ReNew Power to merge with RMG Corp

NEW DELHI: ReNew Power Pvt Ltd has agreed to merge with RMG Acquisition Corp II, in a deal that will result in ReNew becoming a publicly listed company on the NASDAQ with the name ReNew Energy Global PLC.

The deal will value the combined entity at around $8 bln and is expected to be completed in the second quarter of 2021, subject to customary closing conditions.

Gross cash proceeds from the transaction are estimated to be about $1.2 bln, including $855 mln fully-committed private placement of common stock in ReNew Power and $345 mln of gross cash held in trust by RMG Acquisition Corp II, subject to redemptions by shareholders.

The anchor investors include BlackRock, BNP Paribas Energy Transition Fund, Chamath Palihapitiya, Sylebra Capital, TT International Asset Management Ltd, TT Environmental Solutions Fund and Zimmer Partners. Proceeds of around $610 mln will be used to fund the company's accelerated growth strategy.