Masdar close to buying 20% of India's Hero Future Energies - report

Abu Dhabi Future Energy Company PJSC, better known as Masdar, is ready to buy a 20% stake in Indian renewable power producer Hero Future Energies, the Economic Times reports

Citing two sources familiar with the matter, the newspaper writes that the transaction is estimated at USD 150 million (EUR 137.4m). One of the insiders has said the deal is to be signed this week.

Following the purchase, 53% of the power producer's stock will be held by its promoters. The World Bank’s International Finance Corp (IFC), which in 2017 invested USD 125 million in the company, owns a 27% stake.

Hero Future Energies, part of the Hero Group, has a 1,200-MW portfolio of installed wind and solar plants plus an additional 500 MW under construction and 300 MW in the pipeline.

The deal will mark government-owned Masdar’s entry into the Indian renewable energy market. BNP Paribas is acting as the UAE group’s advisor in the acquisition, while JP Morgan is Hero Future Energies’ counsel.

According to earlier local media reports, Malaysia’s Petroleum Nasional Berhad (Petronas) and Singapore’s Sembcorp Industries (SGX:U96) are also vying for a minority stake in Hero Future Energies.

(USD 1.0 = EUR 0.916)

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