Statkraft has put India assets on the block. But suitors have turned selective
Sneha Shah , Nehal Chaliawala JSW Group, Serentica, Sembcorp, Blackstone, and Macquarie vie for solar assets of Norwegian state-owned firm Statkraft India has a total renewable portfolio of around 1GW, including solar and hydro power. Gift this article
Mumbai: The list of suitors for the renewable energy assets of Norwegian state-owned firm Statkraft has narrowed to five, who are now evaluating the solar assets of the company at an equity value of ₹ 3,000 crore.
Mumbai: The list of suitors for the renewable energy assets of Norwegian state-owned firm Statkraft has narrowed to five, who are now evaluating the solar assets of the company at an equity value of ₹ 3,000 crore.
While the multi-national renewable energy major owns hydropower assets as well in India, the solar business is likely to be sold first, said four people with the knowledge of development said.
The buyers include domestic power companies as well as private equity firms including JSW Group, Serentica, Sembcorp, Blackstone, and Macquarie. The prospective buyers are working with the company to carve out different deals depending on their interest as the entire portfolio of solar and hydropower assets is too large for one buyer, these people said.
'While strategics such as JSW Group and Sembcorp are mainly interested in the solar assets of the company, firms such as Blackstone and Serentica would be looking at the hydro assets as well," one of the persons cited above said.
'It's a large portfolio so there is scope of different structures. It depends on how they can get maximum value," a second person said.
PE firms such as Macquarie are likely to initially only evaluate acquiring the solar assets of Statkraft AS in India, the second person cited above said.
Statkraft India has a total renewable portfolio of around 1 GW, including solar and hydro power. These include a 76-MW operational solar power plant in Tamil Nadu, and another 75 MW of solar capacity being developed at the same location. A 445-MW solar power project in Rajasthan is nearing completion.
Its hydropower assets include a 49% stake in two operating hydropower assets in Himachal Pradesh at Allain Duhangan (192 MW) and Malana (86 MW). Another hydropower plant of 150 MW capacity is under construction in the state at Tidong.
Though the equity value of its solar plants is likely to fetch the group around ₹ 3,400 crore or $400 million in equity value, the overall enterprise value is likely to exceed $700-750 million after accounting for debt, the third person cited above said.
'Most of the solar power plants of the company are either already operational or likely to be operational soon. Hydro, however, is a complex deal where we expect asset by asset sale," the fourth person in the know said.
The fact that the hydropower assets are joint ventures–with LNJ Bhilwara group–also complicates the deal for potential suitors.
A spokesperson for Macquarie Group declined to comment. Emailed queries to Statkraft, Blackstone, Serentica, Sembcorp and JSW Group did not elicit any response. Also Read | Another PLI scheme hits the Chinese wall
The Norwegian group's decision to sell its India assets comes after a steady slide in overall revenue for the group and mounting debt. It has decided to sell its Indian assets and focus on other high-potential markets in the Nordics, Europe and South America to meet its growth targets.
Statkraft is the largest renewable energy producer in Europe with an installed capacity of 19.4 GW, of which 12.1 GW is hydropower capacity in Norway. Topics You May Be Interested In Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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