Reliance New Energy Solar Ltd, part of Indian conglomerate Reliance Industries Ltd (BOM:500325), has made an open offer to acquire a 25.9% stake in domestic solar EPC contractor Sterling and Wilson Solar Ltd (BOM:542760) for roughly INR 18.4 billion (USD 245m/EUR 211m) in cash.
The proposal is part of Reliance Industries' definitive agreement from earlier this month to buy a 40% stake in Sterling and Wilson Solar.
The target entity said in a bourse filing on Tuesday it has received a draft letter of offer from Reliance, which is proposing to buy the shares at INR 375 apiece. Under the plan, Reliance Industries Limited and Reliance Ventures will get up to 49.14 million fully paid-up equity shares of the solar EPC contractor. This represents the entire public holding in the company.
The open offer will close on December 21.
Sterling and Wilson Solar is focused on delivering engineering, procurement and construction (EPC) and operations and maintenance (O&M) services to the photovoltaic (PV) industry. So far, it has executed more than 11 GW of projects globally. With a headcount of 3,000, it operates in 24 countries.
(INR 10 = USD 0.133/EUR 0.114)
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