Clean energy acquisitions for Reliance Group, a huge leap towards fossil-free future
Reliance New Energy Solar Ltd acquired a 100 per cent stake in REC Solar for Rs 5,793 crore, also to buy a 40 per cent stake in Sterling & Wilson Solar for Rs 2,845 crore.
Reliance New Energy Solar Ltd acquired a 100 per cent stake in REC Solar for Rs 5,793 crore, also to buy a 40 per cent stake in Sterling & Wilson Solar for Rs 2,845 crore.
Reliance New Energy Solar Ltd, a wholly-owned subsidiary of Reliance Industries Ltd, announced two acquisitions for approximately Rs 8,630 crore on Sunday, October 10. This is in line with the company's ambitious Rs 75,000 crore green energy transition plan at Dhirubhai Ambani Green Energy Giga Complex at Jamnagar.
Reliance New Energy Solar Ltd announced the acquisition of a 100 per cent shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd., for an enterprise value of USD 771 million ( Rs 5793 crore).
The company further announced the to acquire a 40 per cent stake in Sterling & Wilson Solar Ltd (SWSL), a Shapoorji Pallonji group company through a combination of primary investment, secondary purchase and an open offer of about Rs 2845 crore at Rs 375 per share, a discount of 14 per cent to Rs 434 (closing market price on Friday, October 10).
Both the acquisitions resonate with Reliance’s commitment to establish and enable up to 100 GW of solar energy in India by 2030 and become a global player in the renewable industry.
REC, headquartered in Norway and having operational headquarters in Singapore and regional hubs in North America, Europe, Australia, and Asia-Pacific is an international pioneering solar energy company. It is one of the world leaders in Solar Cells/Panels and Polysilicon. In India, Reliance plans to use REC’s industry-leading technology in their fully integrated, metallic Silicon to PV Panel manufacturing at Dhirubhai Ambani Green Energy Giga Complex, Jamnagar initially starting with 4 GW per annum capacity and eventually growing to 10 GW per annum.
This acquisition will provide Reliance with a ready platform to expand and grow in key green energy markets globally, including Europe, the US and Australia.
On the home front acquisition of SWSL, a leading and highly reputed international EPC and O&M service provider in the renewables sector will be a valuable addition to its solar value chain. SWSL provides a range of solar energy turnkey solutions, including design, procurement, construction, project management and operations and management.
Khurshed Daruvala will continue to be Chairman of the Board and lead the next phase of growth for SWSL.
“Together with our other recent investments, Reliance is now ready to set up a global scale integrated Photovoltaic Giga factory and make India a manufacturing hub for lowest cost and highest efficiency solar panels," stated Mukesh Ambani, chairman of Reliance Industries Ltd in a press release
The share price of Sterling & Wilson Solar Ltd has seen a jump of 9.73 per cent, trading at Rs 477.50, whereas Reliance Industries shares are trading at Rs 2690.70 with a gain of 0.73 per cent today at 11.42 am.