Actis Llp’s BluPine Energy has acquired 404 megawatt (MW) solar power assets of Kolkata-based Atha Group, the London-headquartered private equity firm announced on Thursday. Atha’s solar assets’ enterprise value for the deal is around ₹2,100 crore.
Mint reported on 9 August about Actis Llp winning the bid to acquire Atha Group’s solar power projects for an equity value of around $100 million, with the sale purchase agreement being signed. This comes in the backdrop of Actis selling its Indian renewable energy platform Sprng Energy at an enterprise value of $1.55 billion to energy major Shell Plc.
“BluPine Energy, a renewable wind and solar power generation and storage business, has completed the acquisition of a 404MWp operating pan-India solar portfolio from the Atha Group. The acquisition will enable BluPine to support India’s energy transition by targeting 4GWs of portfolio capacity over the next 4 – 5 years," Actis said in a statement.
Blupine Energy Pvt. Ltd develops grid-connected solar and wind power parks, besides commercial and industrial projects. The commercial and industrial segment has been attracting investors who plan to supply power to third-party as well as captive consumers in India who prefer such suppliers instead of depending on a more expensive electricity grid.
“Actis has committed to invest up to US$800m in BluPine through Actis’ Energy 5 Fund, which represents US$6 billion of investable capital, and is focused on investing in global energy transition opportunities," the statement added.
Kotak Investment Banking and Avendus Capital were the advisors for BluPine and Atha Group respectively. Nine companies, including Torrent Power, Ayana Renewable Power, Sembcorp Industries and Actis, had evinced interest in acquiring Atha’s solar assets. In the end, Ayana and Actis remained in fray, with Actis placing the winning bid.
“Actis has previously built two leading Indian renewable IPPs, Ostro Energy and Sprng Energy, both of which were sold to key strategic players, becoming marquee transactions in the industry," the statement said.
Blupine Energy is the third clean energy firm by Actis in India following its deal selling Ostro Energy to ReNew Power Ventures in 2018 at an enterprise value of $1.5 billion. Actis has $15 billion of assets under management and has invested in 70 green energy projects globally tolling 12 GW capacity and is targeting an additional 12.5 GW capacity. Actis, which invests only in emerging markets, has so far invested in financial services, energy and real estate sectors in the Indian market.
“With energy demand increasing by 5-6% every year, it’s vital that India can meet the electricity needs of its population. Leveraging our experience of building and operating Ostro Energy and Sprng Energy, we’re committed to building a renewable energy platform of scale which will be a key driver in India’s Net Zero journey. BluPine Energy will build wind, solar and storage capabilities that deliver clean, reliable power across India with a core focus on sustainability and positive impact," Sanjiv Aggarwal, Partner, Energy Infrastructure at Actis said in the statement.
Several green energy deals are in play as reported by Mint earlier including Canada Pension Plan Investment Board (CPPIB) backed ReNew Energy Global Plc looking to sell 1 gigawatt (GW) of operational clean energy capacity, with the deal having an enterprise value of around $1 billion; global oil major BP Plc, Norway’s state-run electricity firm Statkraft, and New York-based I Squared Capital are in the fray to buy Continuum Green Energy (India) Pvt. Ltd, and Singapore’s Sembcorp Industries Ltd’s subsidiary Sembcorp Green Infra Ltd (SGIL) signing an agreement with US private equity firm Global Infrastructure Partners’ (GIP) to acquire its clean energy platform Vector Green Energy. Also, private equity firm TPG looking to sell its stake in renewable energy company Fourth Partner Energy Pvt. Ltd.