Greenko founders trim Orix stake buy plan, to raise $610 million
Live Events
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
Mumbai: Greenko Group founders, Anil Chalamalasetty and Mahesh Koll, are scaling down their planned acquisition of a stake held by Japan's Orix Corporation , opting to raise $610 million to buy 17.3% of the renewable energy firm's holding company, people familiar with the matter said.Initially, they had aimed to raise $800 million for the full 20% stake held by the Tokyo investor.The deal has been restructured to reduce leverage in the tightening credit markets scenario and is expected to be finalised later this week, the people said, requesting anonymity.The financing could be raised at a cost of around 14% and is being syndicated by Deutsche Bank and Barclays. Investors in the two-year facility could be large funds, including Clifford Capital, BlackRock and other private credit funds."Greenko promoters have sent a revised deal to Orix and it should close in the next two weeks," said a source. "The promoters decided to scale down the fundraise as the cost of borrowing has gone up from 12% to 14% between March and May due to global uncertainties."An Orix spokesperson said as stated on April 25, it has decided to cancel the planned sale of its stake in Greenko to AM Green. "At this time, we are unable to provide any further information beyond what has already been disclosed," said an Orix spokesperson.Spokespersons of Greenko did not respond while Barclays and Deutsche Bank did not respond to requests for comment.The revised plan follows the collapse of an earlier share transfer agreement announced on April 25, between Orix and AM Green Power BV, a Greenko founder-owned entity, after the deal failed to meet financing-related conditions precedent. Although the competition regulator cleared the transaction on March 11, funding agreements with lenders could not be finalised by the extended April 15 deadline, forcing Orix to terminate the agreement.In a statement dated April 25, Orix confirmed it had scrapped the deal originally announced in January, citing failure to meet key conditions.In January, Orix had announced plans to reinvest through a convertible note issued by AM Green Luxembourg, the parent of AM Green Power. That investment, too, is on hold.Greenko's founders had initially engaged with private credit funds, including Temasekbacked Clifford Capital and BlackRock to raise $800 million for the full 20% stake. While that plan did not materialise, several of the same investors are expected to join the latest round. Japan's Orix had invested in Greenko in 2021 but now wants to sell its stake and reinvest in a new green energy venture called AM Green (AMG), created by Greenko's founders.AMG focuses on future energy like green hydrogen and ammonia, with big plans for clean fuel exports. This deal helps Orix shift focus to next-gen energy while Greenko's founders buy back the stake with help from investors. This move fits Orix's global plan to grow in clean energy and support the shift to decarbonisation
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
13 hours ago
- Mint
Balyasny Taps Ex-Deutsche Bank Basis Trader Jamie Mansell
(Bloomberg) -- Balyasny Asset Management has hired Jamie Mansell, who was co-head of European government bond trading at Deutsche Bank AG until recently, according to people familiar with the matter. Mansell, who specializes in the highly leveraged bond basis trade, made over €200 million ($228 million) for Germany's biggest bank in recent years, the people said, asking not to be identified discussing non-public information. He was previously with Morgan Stanley. He will join Balyasny's macro business as an associate portfolio manager later this year, one of the people said. Mansell — who co-headed EGB with Bennit Shah — and representatives for Balyasny and Deutsche Bank declined to comment. Some of the largest hedge funds employ the so-called basis trade, betting on price differences between cash Treasuries and futures. In order to profit from the tiny gap, traders typically borrow heavily, often 50 to 100 times the capital invested. The highly popular trade has ballooned, with recent estimates putting the amount staked on such bets at about $1 trillion — about double the amount five years ago. Deutsche Bank's fixed income and currency trading unit increased revenues by 17% in the first quarter, outperforming most peers, buoyed mainly by a strong rates business. The unit benefited from high demand for European government bonds as investors shifted money from the US to Europe, as well as from the revival of its rates business in the US. Dmitry Balyasny's multistrategy hedge fund, which manages about $25 billion, has been beefing up its trading desks by hiring several investment managers, with some of them being offered potential payouts of as much as $50 million. In April, the fund delivered gains of about 1% during the volatility around US President Donald Trump's tariff announcements. (Adds details of role at Deutsche Bank in third paragraph. An earlier version of this story corrected Mansell's title in the headline and first paragraph.) More stories like this are available on
Mint
13 hours ago
- Mint
Balyasny Taps Ex-Deutsche Bank Basis Trader Mansell
(Bloomberg) -- Balyasny Asset Management has hired Jamie Mansell, who was co-head of European government bond trading at Deutsche Bank AG until recently, according to people familiar with the matter. Mansell, who specializes in the highly leveraged bond basis trade, made over €200 million ($228 million) for Germany's biggest bank in recent years, the people said, asking not to be identified discussing non-public information. He was previously with Morgan Stanley. He will join Balyasny's macro business as an associate portfolio manager later this year, one of the people said. Mansell and representatives for Balyasny and Deutsche Bank declined to comment. Some of the largest hedge funds employ the so-called basis trade, betting on price differences between cash Treasuries and futures. In order to profit from the tiny gap, traders typically borrow heavily, often 50 to 100 times the capital invested. The highly popular trade has ballooned, with recent estimates putting the amount staked on such bets at about $1 trillion — about double the amount five years ago. Deutsche Bank's fixed income and currency trading unit increased revenues by 17% in the first quarter, outperforming most peers, buoyed mainly by a strong rates business. The unit benefited from high demand for European government bonds as investors shifted money from the US to Europe, as well as from the revival of its rates business in the US. Dmitry Balyasny's multistrategy hedge fund, which manages about $25 billion, has been beefing up its trading desks by hiring several investment managers, with some of them being offered potential payouts of as much as $50 million. In April, the fund delivered gains of about 1% during the volatility around US President Donald Trump's tariff announcements. (Corrects Mansell's title in headline and first paragraph.) More stories like this are available on
Hindustan Times
2 days ago
- Hindustan Times
Germany plans tax cuts to boost stagnant economy
Europe's top economy is planning tax cuts to help kick-start growth, a German government spokesman said Monday, adding that the aim was to pass the measures soon. The government is looking at new tax credits for research, investment and electric company cars as well as cuts to corporation tax of one percent a year for five years from 2028 onwards, finance ministry spokesman Maximilian Kall told reporters. "Everybody's aim... is to boost the economy now," Kall said. "Everybody's goal is to stimulate the economy, secure jobs, support companies and mobilise investment." Germany's economy is struggling to emerge from a persistent slump, hit by high energy and labour costs at home as well as increasingly fierce Chinese competition and new trade barriers imposed by US President Donald Trump. The government officially forecasts zero GDP growth for this year after the economy shrank slightly in 2023 and 2024. The government would look to get the measures passed as quickly as possible, Kall added, saying the cabinet would consider a draft bill on Wednesday. "Intensive discussions" were underway with the aim of getting them passed by parliament before the summer break, Kall said. On Saturday, the Handelsblatt business newspaper reported that the government estimated the cost of the measures at 17 billion euros a year by 2029. Robin Winkler, Chief Germany Economist at Deutsche Bank, said the plan would provide "a welcome short-term stimulus for the manufacturing sector" without being a silver bullet. "Its impact on facilitating the broader structural transformation of the German economy is likely to be limited," he said in a research note. Germany's new government under conservative Chancellor Friedrich Merz also plans to spend 500 billion euros over the next 12 years to upgrade Germany's creaking infrastructure and give the economy another boost. But some economists have warned that the bumper spending package might not boost long-term growth all by itself, warning it will also be necessary to pass reforms and to spend the money wisely. kas-vbw/jsk/fg Deutsche Bank
