Blackstone, Serentica, Adani, JSW circle Norwegian Statkraft's India assets

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Sneha Shah , Priyamvada C The Norwegian energy firm is selling its Indian renewable assets, with Blackstone and Serentica leading bids for its solar assets, while Adani and JSW seek its hydropower plants. Norwegian energy firm Statkraft is looking to sell its assets in India following a steady slide in overall group revenue and mounting debt. (Reuters) Gift this article
Mumbai: Global private equity firm Blackstone and Gurugram-based Serentica Renewables are leading the race to acquire the solar assets of Norwegian energy firm Statkraft in India, while Adani Group and JSW Group are in the fray to acquire its hydro power plants, three people said.
Mumbai: Global private equity firm Blackstone and Gurugram-based Serentica Renewables are leading the race to acquire the solar assets of Norwegian energy firm Statkraft in India, while Adani Group and JSW Group are in the fray to acquire its hydro power plants, three people said.
Serentica, which is backed by PE firm KKR, has also bid for Statkraft's wind assets in India.
Statkraft's solar assets in the country are likely to be valued at ₹ 1,700-1,800 crore and the hydro assets at ₹ 1,400-1,500 crore, according to the people familiar with the developments.
'The binding bids have been submitted and the seller will proceed with one of the buyers for each category of assets," one of them said.
EY Norway is advising Statkraft on the sale. Also Read | Suitors turn selective for Statkraft's India assets
Statkraft India has a total renewable energy portfolio of around 1 GW, including solar energy and hydropower assets. These include a 76 MW operational solar power plant and an additional 75 MW solar power capacity being developed in Tamil Nadu. A 445 MW solar power project in Rajasthan is nearing completion.
Statkraft's hydropower assets in the country 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.
The fact that the hydropower assets are joint ventures with LNJ Bhilwara group complicates the deal for potential suitors.
A spokesperson for Blackstone declined comment. In an emailed response, a spokesperson for Serentica said, 'We explore opportunities for acquisitions and partnerships on an ongoing basis. We were among the selected bidders for the Statkraft portfolio in April, post which we conducted our diligence. We have submitted our binding offers for Statkraft's wind and solar portfolio".
Statkraft, EY, Adani Group, and JSW Group did not reply to emailed queries. Statkraft's India journey
The Norwegian group's decision to sell its India assets comes after a steady slide in overall revenue for the group and mounting debt. Statkraft plans to instead 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.
The Norwegian state-owned firm entered the Indian power market through its subsidiary SN Power in 2004, when it acquired 49% of the shares in Malana Power Co. Ltd. Statkraft was the first foreign investor in India's hydropower sector.
Last month, Fitch downgraded Statkraft's credit rating to BBB+ from A- following weak performance and financial metrics.
'We expect Statkraft to deleverage from 3.5x in 2024, supported by a sizeable divestment programme and cost-saving initiatives, despite lower power prices in the Nordics than last year," Fitch said.
However, deleveraging or reducing debt could be limited by Statkraft's growth ambitions, it added.
The renewable energy producer recently highlighted that it will prioritise its flexible hydropower fleet in the Nordics, and its solar, wind and battery activities in Europe and South America. A global 'India strategy'
Statkraft's new strategy is expected to enable it to focus on fewer technologies and markets to build scale and strengthen competitiveness.
'While the underlying drivers remain strong, the energy transition is moving at a slower pace due to increased global uncertainty, higher costs and lower power prices," the company said in a statement in June. 'The new strategy continues to focus on core activities, placing near term cash flow over volume growth, and reducing complexity and cost."
Statkraft's latest moves mirror a growing trend of global companies looking to monetise their India business by taking advantage of higher valuation multiples available here to deleverage their balance sheets.
Renewable and energy companies owned by global PEs or strategic investors—such as EQT-owned Zelestra Group and Macquarie-owned Vibrant Energy—are looking to sell their India portfolio.
Other sectors, too, are seeing similar transactions—British American Tobacco's partial stake sale in Kolkata-headquartered ITC Ltd, Hyundai Motor's South Korean parent offloading some stake in its India business during last year's initial public offering, and Chicago-based Conagra Brands sale of its controlling stake in India's Agro Tech Foods.
Broadly, there is much interest among private equity and strategic investors in the domestic renewable energy space. India aims for net-zero emissions by 2070, with key targets of 500 GW of renewable energy by 2030 and a 45% reduction in greenhouse gas emissions intensity. 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.