Adani Green Energy completes the acquisition of SB Energy in India’s largest all cash deal worth $ 3.5 billion

Adani Green Energy (AGEL) has completed its acquisition of SB Energy India in an all-cash deal worth $ 3.5 billion. This follows the definitive agreements signed between the two on 18 May 2021. With this deal, SB Energy India is now a 100 percent subsidiary of AGEL. Earlier, it was an 80:20 joint venture between Japan-based SoftBank Group and Bharti Group.

“The acquired portfolio comprises 100 percent sovereign rated counterparties. The average tariff for the portfolio is Rs 2.75 per unit,” according to the company statement. It added that the transaction pegs SB Energy India at an enterprise valuation of about Rs 26,000 crore and marks the largest acquisition in the renewable energy sector in India.

“The addition of these high-quality large utility-scale assets from SB Energy India demonstrates AGEL’s intent to accelerate India’s efforts to transition towards a carbon-neutral future. Our renewable energy foundations will enable an entire ecosystem of new industries that can be expected to catalyse job creation in multiple sectors,” said Vneet S Jaain, managing director and chief executive officer, AGEL.

SB Energy India has 5 gigawatts (GW) renewable assets across four states in India through its special purpose vehicles. The portfolio holds 1,700 megawatts (MW) of operational renewable assets, 2,554 MW of assets under construction and 700 MW of assets near construction.

Solar capacity accounts for 84 per cent of the portfolio (4,180 MW), wind-solar hybrid capacity accounts for 9 per cent (450 MW) and wind capacity accounts for 7 per cent (324 MW).

Split across 15 projects with an average project size of 330 MW, this is one of India’s highest quality renewable portfolios, with many of the assets being solar park-based projects and constructed using best-in-class governance, project development, construction and operations and maintenance standards. The value-accretive acquisition boosts AGEL’s operational portfolio to 5.4 gigawatts (GW) and its overall portfolio to 19.8 GW implying a 4x growth locked-in, the company said.

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