ReNew Energy, India's energy company, has offered to be privatized in a $2.82 billion deal

Filings with the U.S. Securities And Exchange Commission show that some of the largest investors in ReNew Energy Global are offering to take the company public. The proposed deal values the generator, according to calculations, at $2.82 Billion.

The consortium of Masdar in the UAE, Canada Pension Plan Investment Board chairman Sumant Sinha, and Abu Dhabi Investment Authority unit with 64% collective voting rights has formed and offered to purchase shares of India's second-largest clean energy generator for $7.07 per share.

This represents a 11.5% premium over the closing price of the stock on Nasdaq, which was $6.34. According to the company website, the valuation of this offer is based upon a total of 398.51 million diluted shares that were outstanding on Aug. 15.

The consortium stated in a letter sent to the independent director who leads ReNew's Board and attached to SEC filings that the proposal would give the company's investors "immediate liquidty not available on the public markets".

This year, the stock price has dropped by nearly 18%.

If the offer is approved by the board it would be a departure for Japan's largest utility JERA. According to ReNew's July annual filing, JERA owned 11,7% of the Class A shares. It was unclear if JERA held such a large stake in the company.

Masdar stated in a press release that the proposal would "provide capital investment to help support the energy transition of the country".

Goldman Sachs sold its entire shareholding in ReNew in 2021, after the company went public. ReNew has 10,3 gigawatts of solar, wind and hybrid power projects in India.

The consortium has no expectations of a financing or disbursement requirement for the deal. Sethuraman NR reported from Bengaluru and Andres Gonzalez from London. Sudarshan Varadhan contributed additional reporting and writing. Tasim Zahid, Barbara Lewis and Tasim Varadhan edited the article.

(source: Reuters)