Royal Dutch Shell Plc (AMS:RDSA) has agreed to acquire the Indian renewable energy platform Sprng Energy of UK buyout firm Actis for USD 1.55 billion (EUR 1.48bn), the parties announced today.
Sprng Energy has 2.9 GWp of solar and wind energy assets, including 2.1 GWp in operation and 0.8 GWp contracted, as well as a renewable energy project pipeline of 7.5 GWp.
Under the deal, the oil group will acquire Solenergi Power Private Ltd, the direct shareholder of the Sprng Energy group of companies, through its wholly owned subsidiary Shell Overseas Investment BV. The transaction is pending regulatory approval and is expected to close later this year.
The news follows reports this week that Shell was nearing a deal for Sprng Energy. It was reported in March that Actis intended to divest the Indian renewables platform.
“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” said Shell’s integrated gas, renewables and energy solutions director Wael Sawan. The company sees opportunities in combining Sprng Energy with Shell India’s customer-facing gas and downstream businesses.
The portfolio being acquired will triple Shell’s renewable capacity in operation, currently standing at 1 GW.
Sprng Energy, which will keep its brand, was created by Actis in 2017 with a seed asset of 330 MWp.
“We look forward to creating more Sprngs with our latest fund, Actis Energy 5,” said Lucy Heintz, partner, head of energy infrastructure at Actis. Actis Energy 5, whose closure was announced in October 2021, has USD 6 billion of investable capital.
(USD 1 = EUR 0.954)
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