
Macquarie Group, JSW Group’s JSW Neo Energy, and Actis LLP are interested in buying O2 Power, a renewable energy company, in a deal valued at about $1 billion, according to sources. The sale, managed by Barclays, has an enterprise value of around $1.5 billion. More investors are expected to join before making offers.
O2 Power is backed by European asset manager EQT and Singapore’s state-owned fund Temasek, which have invested $500 million and hold 51% and 49% of the company, respectively. Founded by former ReNew Power executives Parag Sharma, Peeyush Mohit, and Rakesh Garg, O2 Power aims for a 5 gigawatts (GW) portfolio and has already reached 4GW capacity.
Biggest Deal
“The sale of O2 Power will be one of the largest in the renewable energy sector,” said a source. Macquarie Group, JSW Group, and Actis have signed NDAs to buy O2 Power. The sale process started this month.
Macquarie Group has been investing in India’s infrastructure since 2008, focusing on energy transition, infrastructure, and digital communications. Actis’ green energy platform, Blupine Energy Pvt. Ltd, develops solar and wind power parks and commercial and industrial (C&I) projects.
Blupine Energy is Actis’ third clean energy firm in India. Actis sold Ostro Energy to ReNew Power Ventures for $1.5 billion in 2018 and Sprng Energy to Shell Plc for $1.55 billion in 2022. JSW Neo Energy has a 13.6GW generation portfolio, with 2.6GW under construction. In 2023, it bought 1.75GW of renewable energy projects from Mytrah Energy for ₹10,530 crore.
A Temasek spokesperson declined to comment on behalf of O2 Power. Spokespersons for O2 Power, Barclays, and JSW Group did not respond to queries. EQT, Macquarie Group, and Actis also declined to comment.
O2 Power is selling solar projects totaling 350 megawatts (MW). In March, it was reported that Edelweiss Infrastructure Yield Plus Fund’s Sekura Energy Ltd was the front-runner in this deal, with equity and enterprise values of $50 million and $200 million, respectively.
Other Deals
Another significant deal in the renewable energy sector is the majority stake sale in National Investment and Infrastructure Fund (NIIF)-backed Ayana Renewable Power Pvt. Ltd, valued at around $800 million. Macquarie Group and JSW Neo Energy have submitted offers for Ayana as well. Macquarie Group is also looking to buy a 49% stake in Hygenco Green Energies Pvt. Ltd for about $400 million.
India has an installed renewable energy capacity of 180.79GW, including 73.31GW of solar and 44.73GW of wind power, out of a total power capacity of 444.75GW. The government aims to add 50GW of green energy capacity annually to reach 500GW of renewable capacity by 2030.
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