Discover Macquarie Group’s bold stride in sustainable energy as a trio of top-tier investors courts its 400MW solar portfolio, echoing India’s booming renewable energy market. With a $300 million deal on the table, delve into the intrigue behind the strategic shifts and bustling investments foretelling India’s green future.
NEW DELHI: The Australian investment powerhouse Macquarie Group is negotiating a significant sale of its sustainable energy assets, as its Stride division’s 400-megawatt (MW) solar projects have caught the discerning eyes of three potential purchasers. This move echoes the persistent vibrancy in India’s renewable energy landscape, with the transaction’s equity value poised around the $300 million mark.
Insider sources, preferring anonymity, disclosed that Gentari Sdn Bhd, a Petronas subsidiary, the global private equity player Actis Llp, and Edelweiss-backed Sekura Energy Ltd, have stepped forward showing substantial interest in acquiring Stride.
The sales process, shepherded by Bank of America Corp. (BoFA) since its inception in October, is gaining momentum. “Stride’s portfolio, sporting more than 415MW of eco-friendly power generation, is on the verge of receiving non-binding offers. Firms such as Gentari, Actis, and Edelweiss are currently scrutinizing the finer details,” revealed one of our sources.
Further, Macquarie is orchestrating another strategic move by appointing JP Morgan to facilitate the divestiture of its Green Investment Group (GIG) platform, notably named Vibrant Energy. This prospective deal is estimated to attract an equity value in the vicinity of $250 million.
Requests for remarks from BoFA, Actis, as well as Macquarie, Gentari, Petronas, and Edelweiss did not elicit immediate responses as of the 21st of December.
In the grander scheme, India’s renewable sector has magnetized substantial investment, aggregating to a robust $6.14 billion over the last three fiscal years up to September, as reported by the Department for Promotion of Industry and Internal Trade (DPIIT).
The burgeoning power demands of the nation, which achieved a historic crest of 239.9 gigawatts (GW) on September 1, surpassing the Central Electricity Authority’s (CEA) projection of 230GW, are intensifying interest in this sector. With an existing 179.55GW in renewable capacity, India is ambitiously charting a course to expand by an additional 50GW each year, with a goalpost of reaching a whopping 500GW by the end of this decade.
International investors are keenly eyeing India’s transition to sustainable energy. In a significant move, Gentari, a subsidiary of Malaysian energy giant Petronas, announced its entry into India’s green energy market through a strategic investment pact with AM Green, a venture initiated by Greenko Group’s founders, Mahesh Kolli and Anil Kumar Chalamalasetty.
Gentari’s investment of $1.5 billion will secure them a 30% share in one of the largest producers of green ammonia globally, marking a bold step in sustainable enterprise. Launched in June 2022, Gentari aims to spearhead the clean energy wave by assembling a 40GW renewable energy portfolio and by supplying 1.2 million tonnes of green hydrogen annually, in addition to setting up EV charging infrastructure across the Asia Pacific, with particular emphasis on Malaysia and India.
As the green energy sector heats up, Ayana Renewable Power is reportedly surveying the market for a substantial stake sale, potentially totalling 100%, with Standard Chartered at the helm targeting an equity valuation in the ballpark of $2 billion. Additionally, shareholders are seeking an injection of $400 million to support further expansion.
Meanwhile, Radiance Renewables Pvt. Ltd., supported by Eversource Capital, is looking to divest its commercial and industrial platform, with Rothschild & Co. advising on a deal approximating an equity value of $150 million. Similarly, Italy’s Enel Group is tapping HSBC to help offload its portfolio, aiming for an equity valuation near $300 million.
Other prospective deals are unfolding. ACME Group is working with EY to offload up to a 51% majority stake in its planned infrastructure investment trust, eyeing an equity value around $1.3 billion. Moreover, Shell is engaging Ambit Group for a valuation ahead of a prospective minority stake sale in Sprng Energy, a holding it acquired in 2022 from Actis at an enterprise value of $1.55 billion. The growing roster of deals underscores the vibrant market for renewable projects as capital continues to flow into India’s burgeoning green energy sector.
