Yinson, through its subsidiary Yinson Renewables, has signed multiple agreements to acquire 37.5% equity interest in an India-based solar company Rising Sun Energy (RSE).
Under the terms of the transaction agreement, Yinson is expected to pay INR554m ($7.2m) in exchange for the stake, while also providing funding of INR600m ($7.8m) to repay certain outstanding liabilities of RSE, subject to certain closing conditions.
Yinson Group chief executive officer Lim Chern Yuan said: “This acquisition is a significant milestone for the company as it marks Yinson’s foray into renewable energy.”
Yinson renewables chief executive officer David Brunt said: “India is an important growth market for our renewables segment, and we are excited to be playing a part in India’s renewable growth strategy. We look forward to working with the RSE team towards achieving our shared objectives.”
RSE owns two operational solar plants in the Bhadla Solar Park, India
RSE owns two operational solar plants in the Bhadla Solar Park, located in Indian state of Rajasthan. The solar plants, which were completed commissioning in 2017, holds a combined generation capacity of 140MW.
In addition, the projects are supported by 25-year Power Purchase Agreements (PPAs), valid until 2042, with NTPC, the large-scale power utility owned by the Government of India.
Yinson said that the transaction complements the strategies of renewables division, and would support the company’s vision of becoming a global energy solutions provider.
Established in September 2014, in India, RSE develops, owns, and operates solar power assets to support the energy markets in India.
Rising Sun Energy founder and chief executive officer Arunav Sharma said: “We welcome Yinson as a new shareholder which will support RSE’s objectives to grow the business and become a leading renewable energy developer and operator. We believe that Yinson’s support and expertise will help to open up greater opportunities for RSE, both in India and globally.”
