Renew Power completes SPAC merger with RMG II
NEW DELHI: Renew Power Pvt. Ltd on Tuesday announced the completion of its merger with Nasdaq-listed special purpose acquisition company (SPAC) RMG Acquisition Corp. II (RMG II).
The merger puts an enterprise value of around $8 billion and an equity value of $4.4 billion on the new entity, Renew Energy Global Plc.
“As a result of the business combination, RMG II has become a wholly owned subsidiary of Renew Energy Global Plc. Commencing at the open of trading on August 24, Renew’s Class A ordinary shares and Renew’s warrants are expected to commence trading on Nasdaq under the symbols ‘RNW’ and ‘RNWWW’, respectively,” Renew Power said in a statement on Tuesday.
The $1.2 billion equity proceeds from the Renew Power merger with RMG II includes a private investment in public equity (PIPE) deal of $855 million.
The PIPE investors include Blackrock, BNP Paribas Energy Transition Fund, Chamath Palihapitiya, Sylebra Capital, TT International Asset Management Ltd, TT Environmental Solutions Fund and Zimmer
Partners.
Mint reported on 15 February about Renew Power’s SPAC plans at a valuation of almost $4 billion, and its discussions with RMG Acquisition owned by Nasdaq-listed SPAC Riverside Capital Management. Renew Power had shelved its Indian IPO plan in 2019 amid volatility.
“As a result of this transaction, Renew has received $610 million in net proceeds, consisting of funds from RMG II’S former trust account and from a PIPE, after redemptions and transaction fees,” the statement said.
Renew Power operates 6.24 gigawatts (GW) of solar and wind power, with a total capacity of around 10GW as of December 31. In 2018, it had acquired 1.1GW of wind and solar power assets from Ostro Energy, one of the biggest acquisitions in the Indian renewable energy space.
“The completion of our business combination with RMG II begins a new era for our company, and is a great step forward for enabling further decarbonization of the Indian power sector,” said Sumant Sinha, CEO of Renew in the statement.
Renew is among the earliest entrants in India’s green economy. Its existing shareholders include Goldman Sachs, Canada Pension Plan Investment Board, Japan’s JERA Co. Inc., Abu Dhabi Investment Authority, GEF SACEF India and Sumant Sinha.