Greenko closes in on Orange Renewables

Having entered into exclusive negotiations with Delhi-based Orange, Greenko which is backed by Singapore’s GIC and Abu Dhabi Investment Authority, is close to striking a deal to purchase wind and solar energy producer for an enterprise value of about $1 billion.

The acquisition, if it goes ahead, will help the Hyderabad headquartered company increase its operating portfolio to about 4 gigawatts from 3.2 gw, making it the largest clean energy provider in the country, overtaking ReNew Power, which has a commissioned and planned capacity of 3.2 gw of wind and solar projects.

Orange is owned by Singapore based AT Capital, a fund that has India-born billionaire Arvind Tiku as its primary sponsor. Based in Russia, Tiku made his fortune in the Central Asian oil and gas industry.

Orange has 750 megawatts of operational wind and solar generating plants in five states — Andhra Pradesh, Karnataka, Madhya Pradesh, Rajasthan and Maharashtra. Another 250 mw is in the pipeline.

Additionally, Orange has permits for another 1 gw of projects. Greenko is expected to buy the holding company that owns all the assets.

The company was put on the block around a year ago. Investment bank Rothschild represents the sellers. Greenko entered the picture after ReNew withdrew following initial talks. Hero Future Energies, Sembcorp India and PE fund Actis were said to be among the other contenders in the fray.

Greenko is likely to make a formal announcement by this month-end