- Press Releases
October 11 (Renewables Now) - Indian conglomerate Reliance Industries Ltd (BOM:500325) has sealed definitive agreements to buy a 40% stake in domestic solar EPC contractor Sterling and Wilson Solar Ltd (BOM:542760).
The acquisition will be made through Reliance New Energy Solar Ltd, the buyer said on Sunday.
Sterling and Wilson is a joint venture of India’s Shapoorji Pallonji and Company Pvt Ltd (SPCPL) and the Khurshed Yazdi Daruvala family. The company is focused on delivering engineering, procurement and construction (EPC) and operations and maintenance (O&M) services to the solar industry. So far, it has executed more than 11 GW of projects globally. With a headcount of 3,000, it operates in 24 countries.
As part of the acquisition, RNESL will get a preferential allotment of 29.3 million shares in the target entity at INR 375 (USD 4.99/EUR 4.31) apiece for a 15.46% stake and buy a 9.70% interest through the acquisition of 18.4 million shares at the same price from SPCPL. Additionally, RNESL will go for a public offer to acquire up to 49.1 million shares for a further 25.9% stake.
The deal is seen to back Reliance Industries’ goal of enabling the deployment of up to 100 GW of solar capacity in India by 2030 and allow it to create “a comprehensive, end-to-end ecosystem.”
The deal’s closing is subject to customary regulatory and other approvals. It comes on the heels of Reliance’s announcement that it is taking full ownership of Norwegian solar cell and module manufacturer REC Group and establishing 4 GW of solar manufacturing in Jamnagar.
(INR 10 = USD 0.133/EUR 0.115)