Reliance New Energy Solar to acquire 40% stake in Sterling and Wilson Solar

The transaction is subject to customary regulatory and other approvals.

Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of Reliance Industries Ltd (Reliance) on Sunday executed definitive agreements with Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala and Sterling & Wilson Solar Ltd (SWSL) to acquire 40% stake post-money in SWSL through a series of transactions

The deal size is likely to be ₹2,845 crore depending upon the response to the open offer.

There will be a preferential allotment of 2.93 crore equity shares (equivalent to 15.46% post preferential share capital) to RNESL at a price of ₹375 per share and RNESL will acquire 1.84 crore equity shares from SPCPL (equivalent to 9.70% post preferential share capital) at a price of ₹375 per share.

Besides RNESL will make public announcement to public shareholders of SWSL to acquire up to 4.91 crore equity shares of SWSL, representing 25.9% in accordance with SEBI Takeover Regulations.

“RNESL will hold 40% of the equity capital of SWSL, consequent to acquisition in the open offer, follow-on acquisition of shares from SPCPL and Khurshed Daruvala, and sell down, if any required,” Reliance said in a statement.

With 11-plus GW of solar turnkey projects executed globally and more than 5 decades of engineering experience, SWSL is a leading international EPC and O&M service provider in the renewables sector.

The company has a 3,000 strong team and presence across 24 countries, and it provides a comprehensive range of solar energy turnkey solutions including design, procurement, construction, project management and operations and management.

Mukesh Ambani, Chairman, Reliance Industries, said, “SWSL, with its engineering talent, deep domain knowledge, global presence, and experience of executing some of the most complex projects globally, will become an important part of our solar value chain.”

“This will enable us to deliver our comprehensive, end-to-end ecosystem leading to cost-efficient green energy for Indian consumers,” he said.

“We have great respect for Khurshed Daruvala and the world class institution that he has built over the years and look forward to collaborating in making SWSL a global EPC and O&M leader,” he added.

Shapoor Mistry, Chairman, Shapoorji Pallonji & Co. Pvt. Ltd, said “We are happy to welcome Reliance in Sterling and Wilson Solar Ltd. Through the decades, spanning three generations, the Shapoorji Pallonji group has helped Sterling and Wilson become a global leader in providing turnkey solutions in the energy value chain.”

“SWSL is now well-poised to make a valuable contribution, as the world transitions to a low-carbon economy. I believe this partnership is beneficial to all stakeholders and will greatly contribute to making India a leading green energy powerhouse,” he said.

Khurshed Daruvala, Chairman, SWSL said, “ Along with the Shapoorji Pallonji Group we have made SWSL a global leader in providing turnkey solutions in the energy value chain. Reliance, with its integrated new energy vision, and a commitment to put India on the global green energy map, provides us a great opportunity to further establish SWSL as the leading EPC solutions provider globally.”

“I am sure this partnership will give SWSL new energy,” he added.

Mr Daruvala will continue to be Chairman of the Board and lead the next phase of growth for SWSL.

The transaction is subject to customary regulatory and other approvals.

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