I Squared Capital, Brookfield and National Investment and Infrastructure Fund (NIIF) are in the early stages of discussions for acquiring rooftop solar power producer CleanMax Enviro Energy Solutions. The potential buyers have submitted non-binding bids recently, said two persons aware of the development. The proposed deal will value CleanMax at $1 billion, inclusive of its debt.
At present, US-based Augment Infrastructure owns a majority stake in CleanMax. Last year, Augment Infrastructure acquired a majority stake from Warburg Pincus and IFC in a Rs 1,650-crore deal, which included a primary capital infusion.
Investment bank Rothschild is the advisor for the stake sale. According to sources, other global infrastructure investors such as Canadian fund CPP Investments (CPPIB) and Australian major Macquarie are also considering this transaction. However, this information could not be confirmed.
AgenciesA minority stake sale to raise $250-300 million is also an option, while the final decision is dependent on the valuation, sources said.
Mails sent to Augment Infrastructure, CleanMax and NIIF did not elicit any response, while spokespersons from Brookfield and I Squared declined to comment.
CleanMax Enviro Energy, incorporated in 2010 by Kuldeep Jain, operates renewable energy assets including rooftop solar projects, solar farms, wind farms and wind-solar hybrid farms. It has about 350 corporate clients, including Adobe, Facebook, Cipla, Tata Motors, Bajaj, Mahindra, L&T, Carlsberg, United Spirits, Manipal University, Kajaria, GE, Dr Reddy’s, Mindtree, Taj and Volvo.
Since inception, the group has executed projects aggregating 774 MW – 275 MW rooftop and 499 MW ground mounted. Of this, around 257 MW has been down sold to investors, while the remaining around 517 MW is on the books of the company. The group also forayed into wind power generation and wind-solar hybrid projects with an aggregate capacity of 139.5 MW.
Source: Economic Times