Continuum Energy’s founders are interested in buying out Morgan Stanley’s entire stake in the green energy company that they founded in 2009 and in which the US-based bank invested subsequently. “Founders are interested in buying out the entire stake of Morgan Stanley Infrastructure Partners in Continuum and have put together financing for this,” said Arvind Bansal, CEO, Continuum Energy. “The funding arrangement involves a mix of equity from the founders and debt.”
However, he declined to assign a value to the stake or to divulge the quantum of funding involved.
Morgan Stanley owns a majority stake in the company, which was founded by Bansal and Vikash Saraf. Bansal also confirmed that Morgan Stanley had engaged Citibank to find a buyer for its stake.
North Haven Infrastructure Partners, a global infrastructure fund managed by Morgan Stanley Infrastructure Partners, invested $212 million in Continuum Energy in 2012.
Continuum Energy has a portfolio of 3.5 GW comprising 807.4 MW operational capacity, 502.5 MW under-construction, 950 MW ready-for-construction sites and an additional 1,300 MW under development. It owns and operates India’s largest, 226.8 MW wind-solar co-located hybrid project in Tamil Nadu and is in the process of building a similar 250 MW wind-solar hybrid project in Gujarat.
The company’s renewable energy portfolio is similar in size to that of Tata Power’s.
In 2015, US-based Sun Edison, the world’s largest renewable energy company at the time, had struck a deal to buy Continuum Energy but the deal was terminated because of Sun Edison’s financial troubles. Sun Edison eventually filed for bankruptcy in the US.
Norway’s Statkraft held discussions to acquire Continuum Energy in 2019, but a deal did not materialise. Recently, reports surfaced about ReNew Power’s interest in acquiring the company. But Bansal said the reports were not true.
Continuum Energy raised $561 million in February this year by selling bonds to international investors. In April, the company obtained financing of $120 million from 3 investors — Canada Pension Plan Investment Board, Ontario Municipal Employees Retirement System and Pierfront Capital.