TheNFAPost Podcast

• India’s largest renewables M&A transaction

• AGEL has signed definitive agreements for 100% acquisition of SB Energy Holdings Limited (“SB Energy India”). SB Energy India is a joint venture between Japan-based SoftBank Group Corp. (“SBG”) (80%) and Bharti Group (20%) and houses 4,954 MW of renewable assets in India

• The portfolio comprises high quality, large scale utility renewable assets. All projects are contracted to sell power under 25 years Power Purchase Agreements (PPA) with sovereign rated counterparties

• The transaction is for a fully completed enterprise valuation of approximately $3.5 billion (~Rs. 26,000 Cr.)

• This transformational acquisition will enable AGEL to achieve its target renewable portfolio of 25 GW four years ahead of the target timeline

Ahmedabad, NFAPost: Adani Green Energy Limited (AGEL), signed share purchase agreements for the acquisition of 100% interest in SB Energy India from SBG (80%) and Bharti Group (20%) at an enterprise valuation of approximately $3.5 billion.

With this acquisition, AGEL said in a regulatory filing with BSE that the company will achieve total renewable capacity of 24.3 GW (1) and an operating renewable capacity of 4.9 GW. SB Energy India has a total renewable portfolio of 4,954 MW spread across four states in India. The transaction marks the largest acquisition in the renewable energy sector in India.

The target portfolio consists of large-scale utility assets with 84% solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW) and 7% wind capacity (324 MW). The portfolio comprises of 1,400 MW operational solar power capacity and a further 3,554 MW is under construction. All projects have 25-year PPAs with sovereign-rated counterparties such as Solar Energy Corporation of India Ltd. (SECI), NTPC Limited and NHPC Limited.

Solar park

The operating assets forming part of the portfolio are primarily solar park-based projects and have been built following best-in-class governance, project development, construction, and operations and maintenance practices, resulting in this being one of the highest quality renewable portfolios in the country.

This acquisition demonstrates AGEL’s intent to be the leader in sustainable energy transition globally and makes it one of the largest renewable energy platforms in the world. The closing of the transaction is subject to
customary approvals and conditions.

Expressing happiness over the development, Adani Group Chairman Gautam Adani said this acquisition is another step
towards the vision, we stated in January 2020, wherein the company laid out its plans to become the world’s largest solar player by 2025 and thereafter the world’s largest renewable company by 2030.

Energy platform

“India, without any doubt, has been one of the few nations that have accelerated its global commitment towards climate change and we intend to do our part to execute on the promises made. The renewable energy platform that we are building will lay the foundation for attracting several other global industries that are increasingly looking to reduce their carbon footprint (as well as lay the foundation for opening up adjacent platforms that include Hydrogen and Storage),” said Gautam Adani

He also said the company is well on its way to achieve stated solar portfolio targets four years before the deadline set for the company. “The quality of assets that SoftBank and the Bharti Group have built are excellent and I compliment their efforts to support India’s renewable energy transition. We are proud to take their legacy forward,” said Gautam Adani.

SoftBank Group Corp Representative Director, Corporate Officer, Chairman & CEO Masayoshi Son said SB Energy India was established in 2015 with the goal of creating a market-leading clean energy company to help fuel India’s growth with clean and renewable sources of energy.

Global investment

“We are immensely proud of all that we have accomplished. As SBG continues our transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India’s growth,” said Masayoshi Son.

Commenting on the development, Bharti Enterprises Chairman Sunil Bharti Mittal said he is delighted that SB
Energy has found a good home to carry on its pioneering journey of building a foremost renewable energy company in India.

“Adani Group has an outstanding track record of building a green energy powerhouse which will get further acceleration with the combination of SB Energy into its fold. I am glad that Bharti could play a constructive
role in partnership with SoftBank,” said Sunil Bharti Mittal.

Renewable portfolios

Adani Green Energy Limited (“AGEL”), a part of India-based Adani Group, has one of the largest global
renewable portfolios with 19.3 GW of operating, under-construction and awarded projects, and locked-in
growth projects catering to investment-grade counterparties.

The company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects. Key customers of AGEL include the National Thermal Power Corporation (“NTPC”), Solar Energy Corporation of India (“SECI”) and various state discoms. Mercom Capital, the US-based think tank has ranked the Adani Group as the #1
global solar power generation asset owner.

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