India's Greenko closes Orange buy and agrees Skeiron acquisition

The Pavgada solar park in Karnataka, India. Photo by: Greenko (www.greenkogroup.com).

October 9 (Renewables Now) – India’s Greenko Energy Holdings said today it will be adding 1.3 GW of operating solar and wind assets to its portfolio after successfully completing its acquisition of Orange Renewables Singapore and agreeing a new purchase.

Apart from closing the previously announced Orange Renewables transaction, Greenko unveiled it has signed a definitive deal to buy Skeiron Green Renewables. According to a Monday report by the Economic Times (ET), Skeiron and its 385-MW wind power platform will be acquired for USD 528 million (EUR 461m).

Greenko Energy Holdings said in June it had agreed to acquire Orange Renewables Singapore for a total enterprise value of USD 922 million. The announcement was followed by reports in the media speculating that the transaction had been called off. The official announcement issued by Greenko today does not mention any modifications to the agreed purchase price, but sources quoted by the ET and Mint have said that the total enterprise value of the deal has been reduced by USD 75 million to USD 850 million.

The Orange Renewables acquisition alone is expected to build on Greenko’s earnings before interest, tax, depreciation and amortisation (EBITDA) by about USD 200 million (EUR 174.35m) in the first full year. Further accretion and growth is seen after that, Greenko said.

Combined, the two transactions will add about 1,300 MW of operating and near completion wind and solar assets to Greenko’s portfolio and increase its wind, solar and hydro operational capacity to around 4.5 GW. The company owns as well more than 8 GW of integrated renewable energy projects that are under construction.

(USD 1.0 = EUR 0.87)

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