Adani to buy SoftBank's India green power unit at $3.5 billion valuation

Billionaire Gautam Adani's Group on Wednesday announced the acquisition of SoftBank Group Corp's renewable power business in India for a deal value of USD 3.5 billion (approximately Rs 25,500 crore), to become the world's largest solar company.

In a statement, Adani Green Energy Ltd, the renewable energy unit of the port-to-energy conglomerate, said it has inked share purchase agreements to buy 100 per cent of SB Energy India from SoftBank and Bharti Group.

Without giving deal details, the statement said the transaction values SB Energy India at an enterprise valuation of approximately USD 3.5 billion, it stated. The transaction marks the largest acquisition in the renewable energy sector in India.

With the transaction, AGEL now has a portfolio of 24.3 gigawatts (GW) - enough to power more than 8.5 million homes, or nearly all the households in Australia (9.2 million) each year.

SB Energy, where SoftBank held an 80 per cent stake and Bharti remaining 20 per cent, has a portfolio of 4,954 MW (4.95 GW) of solar and wind assets across four states in India, of which 1.4 GW are currently operational. All projects are backed by 25-year power purchase agreements with buyers.

SoftBank was initially talking to Canada Pension Plan Investment

Board for the stake sale but the talks fell for reasons not disclosed by either party.

"AGEL today signed share purchase agreements for the acquisition of 100 per cent interest in SB Energy India from SoftBank Group (80 per cent) and Bharti Group (20 per cent)," the statement said. "The transaction marks the largest acquisition in the renewable energy sector in India." The target portfolio consists large-scale utility assets with 84 per cent solar capacity (4,180 MW), 9 per cent wind-solar hybrid capacity (450 MW) and 7 per cent wind capacity (324 MW).

The portfolio comprises 1,400 MW operational solar power capacity and a further 3,554 MW is under construction. All projects have 25year power purchase agreements (PPAs) with sovereign-rated counterparties such as Solar Energy Corporation of India (SECI), NTPC and NHPC.