Greenko's acquisition of Orange hangs in the balance - report
Wind park in India. Featured Image: Regien Paassen/Shutterstock.com
The planned USD-1-billion (EUR 868m) acquisition of Orange Renewables Singapore by India’s Greenko Energy Holdings may not be executed after all, the Economic Times (ET) reports.
One source closely involved with the proceedings has told the newspaper that the deal has been put off, while another has said that it is highly unlikely for the move to be implemented by the end-September deadline.
According to insiders quoted by the ET, the reason for the change in plans could be a wind project in Andhra Pradesh. Another possible reason could be the fact that Orange’s holding company, which is the target of the previously announced definitive purchase agreement, is deemed a “core investment company” and needs to abide by the comprehensive guidelines set by the Reserve Bank of India, the ET says, citing an insider.
In early June, Greenko said it had agreed to acquire Orange Renewables Singapore for a total enterprise value of USD 922 million. The acquisition was expected to give Greenko about 907 MW of wind and solar power plants that are in operation or near completion and more than 500 MW of pipeline assets.