UPDATE 1-India's ReNew Energy offered to be taken private in $2.82 bln deal

Reuters
2024-12-11

(Rewrites throughout, adds details)

Dec 11 (Reuters) - Some of the biggest investors in ReNew Energy Global have offered to take the company private, filings to the U.S. Securities And Exchange Commission $(SEC.UK)$ show, in a proposed deal that values the generator at $2.82 billion, according to Reuters calculations.

Major shareholders Canada Pension Plan Investment Board, UAE-based Masdar, chairman Sumant Sinha and a unit of the Abu Dhabi Investment Authority with collective voting rights of 64% have formed a consortium, and offered to buy shares in India's second largest clean energy generator at $7.07 each.

That represents an 11.5% premium to the stock's closing price of $6.34 on Nasdaq on Dec. 10. The offer's valuation is based on a total of 398.61 million diluted shares outstanding as of Aug. 15, according to the company's website.

In a letter to the lead independent director of ReNew's board attached to the SEC filings, the consortium said the proposal would provide the company's shareholders with "immediate liquidity not available in the public markets".

The stock has lost nearly 18% of its value this year.

The offer, if approved by the board, would mean an exit for Japan's top utility JERA, which owned 11.7% of Class A shares in the company, according to ReNew's annual filing in July. It was not immediately clear if JERA still held a stake of that size in the company.

Masdar said in a statement the proposal "would provide capital investment to support the country's energy transition".

Goldman Sachs, one of the earliest investors in the company, sold its entire stake in ReNew after it went public in 2021. ReNew operates 10.3 gigawatts (GW) of solar, wind, hydro and hybrid projects across India.

The consortium does not expect any financing or disbursement condition for the deal.

(Reporting by Sethuraman NR in Bengaluru, Andres Gonzalez in London; Additional reporting and writing by Sudarshan Varadhan; Editing by Tasim Zahid and Barbara Lewis)

((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))

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