European alternative asset manager EQT and Temasek promoted O2 Power and CDC Group Plc-backed Ayana Renewable Power have emerged as the front-runners to acquire 305 MW solar assets of NYSE-listed Azure Power Global.
The potential deal is valued at about $200 million, with the sales process for International Finance Corporation (IFC) and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) backed Azure Power’ assets being run by Avendus Capital.
This comes against the backdrop of EverSource Capital’s plan to buy out the entire 167 MW solar rooftop portfolio of Azure as reported earlier, in what may rank among the largest solar rooftop deals in India.
Azure Power has a 7 GW portfolio. The World Bank’s private sector development arm International Finance Corporation (IFC) and German development finance institution Deutsche Investitions- und Entwicklungsgesellschaft (DEG) are among the other investors in Azure Power, India’s first renewable energy company to list on the US stock market.
“O2 Power and Ayana are the final ones left, with the deal expected to be announced shortly. The deal is expected to have an enterprise value of upwards of $200 million,” said one of the two people cited above requesting anonymity.
The deal activity in India’s clean energy space continues unabated despite being impacted by the coronavirus pandemic and issues such as power procurement curtailment, tariff-shopping by distribution companies (discoms) and unavailability of lenders.
Also, payments delay and transmission and connectivity related challenges persist.
Reference- livemint, Economic Times, Mercom India