India-based renewable energy firm ReNew Energy Global has received a non-binding proposal to be taken private in a deal valued at $2.82bn.
The offer is led by a consortium of stakeholders, including Abu Dhabi Future Energy (Masdar), Canada Pension Plan Investment Board (CPP Investments), and Abu Dhabi Investment Authority’s subsidiary Platinum Hawk C 2019. ReNew Energy founder, chairman, and CEO Sumant Sinha is also part of the consortium.
Together, the group holds collective voting rights totalling 64% in ReNew Energy.
Under the terms of the non-binding proposal, the consortium is offering $7.07 per share in cash for all remaining shares not already owned by its members.
This offer represents an 11.5% premium over the Indian renewable energy company’s closing price on Nasdaq as of 10 December 2024.
In response to the proposal, ReNew Energy ‘s board of directors has established a special committee.
The committee has retained Rothschild as its financial adviser and Linklaters as independent legal counsel to evaluate the proposal and other potential strategic opportunities.
ReNew Energy stated: “While the Special Committee’s evaluations are underway, the ReNew Executive Management’s primary focus will be to continue to ensure the effective management of the Company and in addition, contribute to the evaluation process, as required by the Special Committee.”
The clean energy company also said that there is no assurance of a deal being finalised, nor were any terms guaranteed at this stage.
If approved, the buyout could result in an exit for Japan’s utility JERA, which held 11.7% of ReNew Energy’s Class A shares as of its July filing. Goldman Sachs, an early investor in ReNew Energy, had previously exited its stake after the company’s Nasdaq debut in 2021.
Founded in 2011, ReNew Energy has a clean energy portfolio of 16.3GW as of November 2024.
The Indian company provides renewable energy, green hydrogen solutions, and other decarbonisation offerings, contributing to the global transition to sustainable energy systems.
Earlier this month, ReNew Energy commissioned 750MW of a 1GW solar project in Rajasthan. The remaining 225MW is slated to be completed by January 2025.
