GIC plans to buy assets of Greenko for Rs 1,650 crore

MUMBAI: Singapore’s sovereign wealth fund GIC plans to acquire the trading activities and assets of Hyderabad-based clean energy producer Greenko for about Rs 1,650 crore in one of the largest transactions in the Indian reneweable energy space.

The fund, previously known as the Government of Singapore Investment, has signed non-binding agreement with the London-listed company to buy shares in its affiliated, firm Greenko Mauritius.

The deal if completed would result in the sale of Greenko Mauritius’ assets and trading activities such as the clean energy projects in India. Greenko portfolio includes wind, hydroelectricity, biomass and natural gas assets, which are mostly located in north and south India.

The deal is being advised by Investec Bank, a specialist bank and asset manager, and Arden Partners.

GIC’s notice said that the discussions are at an advanced stage and that the deal is subject to a legally binding sale and purchase agreement. In addition, completion of the deal will be subject to a number of conditions, including the approval of shareholders, in accordance with the requirements of the AIM rules, and arrangements being agreed between GIC and the senior management.

Greenko’s power generation capacity is about 838 Mw which is likely to rise to about 1,000 Mw.