PTT Group

PTT Group Is Moving Away From Oil To Renewable Energy

Thailand’s PTT Group is among companies that have shown interest in buying around 22% stake in renewable energy producer Avaada Energy Pvt. Ltd in a potential equity deal estimated at around $220 million.

The ongoing vendor due diligence (VDD) for Avaada Energy will be completed by February, post which a term-sheet with the selected firms will be signed. The plan is to have a binding term sheet by March-end.

VDD is undertaken for sell-side due diligence and involves a detailed investigation and analysis. PTT Group is now considering investing in renewable energy on many projects in the targeted countries including India.

PTT Group
PTT Group’s plans for Avaada reflect growing interest of global oil and gas majors to invest in India’s emerging green economy as the conventional hydrocarbon space undergoes technological disruptions amid a growing focus on environmental, social and governance (ESG) investing.

Avaada Energy appointing Bank of America to handle the sale process. The process couldn’t start as the pandemic and strict curbs to control its spread stopped air travel, thereby impacting some of the ongoing deals in India’s green energy space.

This interest also comes in the backdrop of India’s power demand hitting an all-time high of 189.6GW in December, and the government working to introduce next-generation power sector reforms to free electricity distribution sector of entry barriers and licensing for distribution and supply.

Reference- livemint, Economic Times, ANI