Greenko set to buy SunEdi­son’s In­dia as­sets

Hy­der­abad-based re­new­able en­ergy com­pany is be­lieved to have fi­nalised the deal for $260 mil­lion

The Financial Express - - COMPANIES - Su­mit Jha

HY­DER­ABAD-BASED re­new­able en­ergy com­pany Greenko En­ergy Hold­ing (GEH) is be­lieved to have fi­nalised a deal to buy USbased SunEdi­son's as­sets in In­dia for $260 mil­lion or over R1,700 crore, a source privy to the in­for ma­tion told FE.

Greenko has val­ued the as­sets of the com­pany at $100 mil­lion while it will take over the li­a­bil­i­ties worth nearly $160 mil­lion.

SunEdi­son's pres­i­dent for Asia-Pa­cific, Pashu­pa­thy Gopalan, said he was un­able to com­ment on the de­vel­op­ment while calls to Greenko went unan­swered.

With this deal, Greenko, which is an af­fil­i­ate of the Sin­ga­pore gover nment’s sov­er­eign wealth fund GIC, will ac­quire com­mis­sioned so­lar power plants with 350 megawatt (MW) ca­pac­ity and also nearly 950 MW un­der con­struc­tion. Greenko re­cently raised $230 mil­lion in fresh fund­ing from Abu Dhabi In­vest­ment Au­thor­ity (ADIA) and the par­ent com­pany.

SunEdi­son, which filed for bankruptcy in April, has found it dif­fi­cult to se­cure buy­ers as its projects are poorly cap­i­talised. As FE re­ported ear­lier, the re­new­able power firm has in­fused barely 5% or R100.5 crore of the re­quired equity of R2,010 crore for all its power plants.

Greenko, which pri­mar­ily owns wind as­sets worth 1,000 MW, would re­quire to im­me­di­ately in­fuse over R500 crore into the projects to avoid states re­vok­ing bank guar­an­tees on these projects.

SunEdi­son, it may be re­called, filed for bankruptcy af­ter an am­bi­tious and highly-lever­aged growth plan came a crop­per. In its bankruptcy fil­ing, the com­pany said it had as­sets of $20.7 bil­lion and li­a­bil­i­ties of $16.1 bil­lion as of Septem­ber 30.

Ex­perts be­lieve that the val­u­a­tion for SunEdi­son may be low on pre­mium as a large chunk of SunEdi­son’s port­fo­lio con­sists of projects won at very ag­gres­sive tar­iff sand likely to be­low on re­turn.

For in­stance, SunEdi­son had bid the low­est ever so­lar tar­iff of R4.63/unit in Novem­ber, last year, for a so­lar park in Andhra Pradesh to be de­vel­oped by the state-run NTPC.

The com­pany had ear­lier sold its much smaller rooftop so­lar power as­set with a ca­pac­ity of 7 MW to Am­plus So­lar, a Gu­ru­gram-based rooftop so­lar com­pany, for nearly R60 crore.

SunEdi­son, which filed for bankruptcy in April, has found it dif­fi­cult to se­cure buy­ers as its projects are poorly cap­i­talised

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