January 20 (SeeNews) - Orient Green Power Co Ltd (BOM:533263), or OGPL, plans to create the largest listed renewable energy company in India through a merger of its wind power business with that of IL&FS Wind Energy.
Orient Green Power said on Thursday that its board has approved entering into 90-day exclusive talks with IL&FS Wind Energy regarding a potential transaction. The former is currently demerging its wind and biomass operations into two separate companies, it added.
The merger being negotiated would form a wind power company with 1.2 GW of operating assets, including 425 MW currently owned by OGPL and 775 MW held by IL&FS Wind. OGPL also has 43 MW of wind parks under construction and IL&FS Wind has 228 MW of projects in development. The merged entity will be in a strong position to acquire them.
“The combined entity will benefit from an enhanced financial position, geographic diversity of wind projects and a variety of Power Purchase Agreements. It will also enjoy a strong pipeline of new projects,” said T Shivaraman, managing director of SVL Limited and vice chairman of OGPL.
The Economic Times said that infrastructure financier IL&FS will have a controlling stake in the new company. Other major shareholders will, according to the newspaper, include Shriram Ventures and Japan’s Orix Corp (TYO:8591).