DUBAI: India’s ReNew Energy Global, a leading player in the nation’s clean energy sector, is set to go private after accepting an enhanced buyout proposal from a heavyweight global consortium.
The group is led by 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), as well as Sumant Sinha, ReNew’s Founder, Chairman, and CEO.
The revised cash offer puts ReNew’s shares at $8.15 a piece, up by 15.3 per cent from $7.07-per-share proposal tabled on December 10, 2024.
The latest figure represents a 26.2 per cent premium over ReNew’s undisturbed share price of $6.34 (just before the initial offer became public) and an impressive 41.5 per cent premium over the 30-day volume-weighted average leading up to the December 10 announcement.
Reuters previously valued the deal at $2.82 billion when the initial bid was made, underscoring the financial punch behind this take-private effort.
Closing the loop
While ReNew has accepted the consortium’s enhanced proposal, the transaction remains contingent on finalizing deal terms, clearing regulatory hurdles, and completing confirmatory due diligence. The company’s board has set up a special committee—guided by Rothschild & Co as independent financial advisor and Linklaters as legal counsel—to scrutinize the proposal.
Notably, support seems likely from JERA Nex, ReNew’s largest outside shareholder, which owns 11.6 per cent of total issued capital and 25.7 per cent of shares not held by the consortium, further boosting the prospects of a smooth transaction.
The deal, if completed, will see the privatisation of India’s second biggest renewable energy producer after Adani Green. ReNew’s portfolio boasts a whopping 10.3 GW of solar, wind, hydro, and hybrid energy assets across the country. Institutional investors dominate its shareholder base:, CPP Investments and ADIA hold the largest stakes at 31.3 per cent and 23.8 per cent respectively, while early backer Goldman Sachs exited prior to ReNew’s 2021 IPO.
