Sterling & Wilson Renewable okays share allotment to Reliance

Sterling & Wilson Renewable Energy Ltd (BOM:542760), or SWREL, yesterday approved an allotment of equity shares that would give Reliance New Energy Solar Ltd a stake of 15.46% in the company.

Slightly more than 29.3 million shares will be acquired by the buyer, a unit of Indian conglomerate Reliance Industries Ltd (BOM:500325), at a price of INR 375 apiece. This brings the value of the transaction to INR 11 billion (USD 148m/EUR 130.6m).

In October, Reliance agreed to buy a 40% stake in SWREL, then called Sterling & Wilson Solar Ltd, in a series of transactions, including the preferential allotment of shares, an acquisition from promoters Shapoorji Pallonji and Co Pvt Ltd (SPCPL) and an open offer. The Competition Commission of India (CCI) recently gave the green light to the plan.

Sterling and Wilson Renewable 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. It operates in 24 countries.

Reliance New Energy Solar has already launched the open offer for the acquisition of a stake of 25.9% in SWREL from public shareholders.

(INR 100.0 = USD 1.345/EUR 1.187)

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