India’s ReNew Energy Global has accepted a revised buyout offer from a consortium led by the Abu Dhabi Future Energy Company (Masdar), Platinum Hawk, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), the Canada Pension Plan Investment Board (CPP Investments) and Sumant Sinha, the Founder, Chairman and CEO of ReNew that is looking to take the company private.
The cash offer was increased to $8.15 per share, up 15.3% from the December 10 price of $7.07 per share when the first offer was made to acquire the entire issued and to be issued share capital of the Nasdaq-listed ReNew not already owned by members of the consortium.
At the time of the initial offer, Reuters valued the deal at $2.82 billion.
The final non-binding offer represents “a premium of 26.2% premium the undisturbed share price of $6.34 on December 10, 2024, being the closing share price prior to the initial non-binding proposal becoming public and a 41.5% premium to the 30-day volume-weighted average price of $5.76 per share (as of December 10, 2024), and an increase of $1.08 per share, equivalent to 15.3%, from the initial non-binding proposal dated December 10, 2024,” ReNew said in a SEC filing.
Proceeding remains conditional on reaching agreement on remaining terms, required regulatory clearances, and completion of confirmatory due diligence.
The company’s board of directors has formed a special committee to consider the proposals. Rothschild & Co has been appointed as independent financial advisor on the offer, with Linklaters as independent legal counsel.
JERA Nex, the largest shareholder outside the consortium, which owns approximately 11.6% of the issued share capital of ReNew1 and 25.7% of the issued share capital of ReNew not owned by the consortium is inclined to support the deal.
As India’s second largest clean energy generator after Adani Green, ReNew operates 10.3 gigawatts (GW) of solar, wind, hydro and hybrid projects across the country.
According to LSEG data, CPP Investments and ADIA are the top two investors in ReNew, with a 31.3% and a 23.8% stake each, respectively. Goldman Sachs was listed as an early investor before selling its entire stake prior to the company going public in 2021.
(Reporting by Bindu Rai, editing by Brinda Darasha)
bindu.rai@lseg.com
