Sterling and Wilson Renewable Energy Ltd (SWREL) today said Reliance New Energy Solar Ltd (RNESL) has become its promoter after it paid payment of balance ₹1,583 crore for acquisition 25.90% equity in it.
The deal announced in October involved Reliance Industries’ wholly owned arm Reliance New Energy Solar Ltd. purchasing interest in SWREL from the Shapoorji Pallonji Group and making an open offer as per takeover regulations. Recently, Competition Commission of India (CCI) has cleared the deal.
With this transaction, RNESL and other group firms together hold over 40% stake in SWREL.
Earlier RNESL (acquirer), Reliance Industries Ltd (RIL) and Reliance Ventures Ltd (RVL) had made initial payment of ₹259 crore for acquisition of 49,13,791 shares or 25.90% equity stake in the SWREL.
Consequent to the allotment of the subscription shares and in accordance with the terms of the SSA and the SEBI (SAST) Regulations, the acquirer (RNESL) has been classified as a promoter of the target company (SWREL) along with the existing promoter and promoter group of the target company with effect from December 30, 2021, it stated.
On December 30, 2021, the acquirer deposited an additional over ₹1,583 crore in the cash escrow account, opened by the acquirer, which together with the initial cash deposit of ₹259.26 crore, made by the acquirer, “is equivalent to 100 per cent of the offer consideration payable under the open offer, assuming full acceptance of the open offer”, it said.
It further stated that the target company, after the receipt of shareholders’ approval on November 2, 2021, fulfilment of other conditions precedents under the SSA and in accordance with the articles of association of the target company, issued and allotted the subscription shares to the acquirer on December 30, 2021.
Reliance New Energy Solar Ltd. is a newly incorporated entity which does not offer any products or services in India. RIL Group has presence in sectors such as hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
The company getting acquired, SWREL, is an end-to-end solar engineering, procurement and construction (EPC) solutions provider in India and over 25 countries globally. In India, SWREL is engaged in provision of solar EPC solutions and operation and maintenance services, including for projects constructed by third parties.
Reliance had said in October that with 11-plus GW of solar turnkey projects executed globally and more than five decades of engineering experience, Sterling and Wilson is a reputed international player in the renewables sector.Source: Mint