Hero Future Energies emerges front-runner for Orange Renewable
NEW DELHI: In what will rank among the top deals in India’s clean energy space, Munjal family-promoted Hero Future Energies Pvt. Ltd has emerged as the front-runner to acquire Orange Renewable from Singaporebased AT Capital Group.
New Delhi-based Orange Renewable, a unit of AT Holdings Pte. Ltd, is among India’s largest renewable energy platforms with an operational capacity of 758 megawatt (MW), made up of 567MW of wind projects and 191MW of solar plants.
on November 14 about Hyderabad-based Greenko Group, backed by Singapore’s sovereign wealth fund GIC Holdings Pte. Ltd and Abu Dhabi Investment Authority, and Hero Future Energies being in separate talks to acquire the portfolio.
“Greenko is no longer in the fray with the talks with Hero Future at an advanced stage,” said a person aware of the development, requesting anonymity.
Hero Future Energies has an operational portfolio of 1,200MW and is planning to put up a large grid-connected solar plant of up to 100MW capacity in South-east Asia. Backed by International Finance Corp. (IFC), the private sector investment arm of the World Bank, the renewable energy firm plans to expand its operations in Africa and India, and be present across the solar energy value chain.
“Hero Future is interested in Orange Renewable’s portfolio,” said a second person who also did not wish to be identified.
The portfolio of Orange Renewable, founded by Arvind Tiku, an Indian-born Singapore resident, has been up for sale for some time now.
on July 19 about Renew Power Ventures Pvt. Ltd being in active discussions with Orange Renewable to acquire its portfolio at an enterprise value of ₹6,175 crore.
The two persons quoted above added that the deal will ultimately hinge on the valuation of the assets. Rothschild has been given the mandate to find a buyer.
Sudhir Nunes, chief executive officer, wind business at Orange Renewable, i n an emailed response said, “Unfortunately we are unable to comment on market speculations.”
AT Capital Group’s portfolio includes investments in real estate, hospitality, natural resources, renewable energy, engineering and construction.
“The company will like to maintain its policy of not commenting on rumours except as required by law,” said a Hero Future Energies spokesperson in an emailed response.
Queries emailed to Tiku and spokespersons for Rothschild and Greenko Group remained unanswered at press time.