Power of the torrent Limited has entered into a share purchase agreement with CESC Limited, Haldia Energy Limitedand other nominal shareholders to acquire 100% of the capital stock of Surya Vidyut Limited, a wholly owned subsidiary of CESC Limited.
Surya Vidyut owns and operates 156 MW of wind power plants in Gujarat, Rajasthan and Madhya Pradesh. The company has had long-term power purchase agreements (PPAs) with state-owned distribution companies (DISCOMs) for 25 years, with a weighted average PPA rate of ₹ 4.68 (~ $ 0.0637) / kWh.
The projected enterprise value for this acquisition is approximately ₹ 7.9 billion (~ $ 107.5 million), subject to closing price adjustments.
Torrent Power, the integrated power company of the diversified Torrent Group, has group revenues of ₹ 205 billion (~ $ 2.79 billion) and a market capitalization of ₹ 750 billion (~ $ 10.2 billion), with presence throughout the energy generation value chain. , transmission and distribution.
The company has an installed generation capacity of 3,879 MW, with 2,730 MW of gas, 787 MW of renewables and 362 MW of coal. Approximately 815 MW of renewable energy projects are in the pipeline, with award letters and PPAs in force for 515 MW. Torrent Power's total generation capacity will increase to 4.9 GW, with a renewable portfolio of more than 1.8 GW, following the acquisition of the wind power projects.
CESC Limited is a vertically integrated power company that generates, transmits and distributes electricity and is part of the RP-Sanjiv Goenka Group. Surya Vidyut Limited's share capital is held by CESC Limited (53.79%), Haldia Energy Limited (46.21%) and other nominal shareholders.
This acquisition establishes Torrent's renewable energy presence in Rajasthan and Madhya Pradesh.
Torrent Power had earlier purchased 100% of the capital stock and all the securities of the special purpose vehicle of Lightsource Renewable Energy Holdings, which operates a 50 MW solar project.
Torrent too Auctioned a 300 MW solar project that discovers a tariff of ₹ 2.22 (~ $ 0.03) / kWh. The auction also had a green shoe option.
For more reports on M&A financing and transactions in the solar, wind, energy storage, smart grid, and efficiency industries, click here.
