Singapore’s sovereign wealth fund GIC Pte Ltd plans to acquire the trading activities and assets of Indian clean power producer Greenko Group Plc (LON:GKO) for GBP 162.8 million (USD 254m/EUR 227.7m).
The fund, previously known as the Government of Singapore Investment Corp Pte Ltd, has signed a non-binding heads of terms with the London-listed company to buy the shares its affiliates do not already own in Greenko Mauritius, according to a Friday statement.
Should it be completed, the transaction would result in the sale of Greenko’s trading activities and assets, including the rights to certain clean energy projects in India, and in the release of the company from all associated financial liabilities, it explained.
The parties are currently an an advanced stage of negotiations. Greenko said it will share more details about the plan, including its reasons for resorting to that move, only after a legally-binding deal is signed. The company noted that it intends to distribute the proceeds from the divestment.
Through Cambourne Investment Pte Ltd and Global Environment Emerging Markets Fund III LP, GIC already holds shares in the Mauritian unit that are exchangeable for Greenko stock as of July 1, 2015.
Also on Friday, Greenko released a trading update for the first half of the year, reporting a 49% year-on-year increase in power generation to 904 GWh. Its installed operational capacity now stands at 838 MW, up from 596 MW as at the end of June 2014. The company portfolio includes wind, hydro, biomass and natural gas assets.
Тhe company warned that its financial results for the full year may miss market expectations as the good performance of its power plants is offset by the late and slower start of the monsoon season in India this year. In addition, the lack of an attractive long-term power purchase agreement for its 70-MW Budhil hydropower plant (HPP) has forced the facility to sell its output to the merchant market at reduced prices.
Still, the company is on track to achieve its target for installed operational capacity of 1,000 MW this year.
(GBP 1.0 = USD 1.562/EUR 1.400)
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Wind turbines in India. Featured Image: OlegD/Shutterstock.com
