Orient-IL&FS wind power merger hits roadblock; GIC, ADIA eye Nitesh Hub
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Negotiations for a merger between the wind power businesses of IL&FS Wind Energy and Shriram Group’s Orient Green Power Ltd have hit a roadblock following the recent fall in wind energy tariffs, a financial daily reported.

Both companies are now looking at other options, unnamed people close to the development told The Economic Times.

However, OGPL vice chairman T Shivaraman told the business daily that the merger talks have not yet been given up. “If it is taking longer than usual, it is because we have been preoccupied with the separation of our biomass business from the wind business.”

The company has now completed formalities of separating the two businesses by selling the biomass business to its holding company Shriram Ventures Ltd, Shivaraman told ET.

The merger would have created the country’s largest listed wind energy company.

In January, Orient Green Power’s board had allowed the company to enter into a 90-day exclusivity agreement to discuss the potential merger with IL&FS Wind. In April, the board had extended the deadline, which ended recently.

As of 31 March 2017, Orient Green Power had a wind power capacity of 425 megawatts and biomass power capacity of 96 megawatts.

Nitesh Hub

Sovereign wealth funds GIC and Abu Dhabi Investment Authority are in the race to acquire a controlling stake in Nitesh Hub, a retail subsidiary of Bengaluru-based developer Nitesh Estates Ltd, The Times of India reported, citing people aware of the development.

Nitesh Hub, a one million-sq ft shopping mall at Pune’s Koregaon Park, is valued at about $100 million (Rs 600 crore). It was acquired by Nitesh Estates in 2015. Global financial giant Goldman Sachs had provided a financial commitment of $37 million to Nitesh Estates for this acquisition, as part of an agreement to jointly invest $250-million in commercial real estate.

Nitesh plans to divest 51-60% in the property to raise around Rs 350 crore. Dutch pension fund APG and Canadian investor Brookfield have also shown interest and have signed non-disclosure agreements, the report added.

International property consultancy CBRE and Yes Bank are advising Nitesh on the deal, and have reached out to six or seven potential investors.

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