Adani Green Energy to acquire SB Energy India from SoftBank, Bharti in $3.5 billion deal

Masayoshi Son says exit is on account of SoftBank Group’s new focus on AI

Adani Green Energy Ltd. (AGEL), has signed share purchase agreements for the acquisition of 100% interest in SB Energy India from SoftBank Group (SBG) (80%) and Bharti Group (20%).

“SB Energy India has a total renewable portfolio of 4,954 MW spread across four States in India. The transaction marks the largest acquisition in the renewable energy sector in India,” AGEL said.

The transaction values SB Energy India at an enterprise valuation of approximately $3.5 billion.

The portfolio consists large scale utility assets with 84% solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW) and 7% wind capacity (324 MW).

It also comprises of 1,400 MW operational solar power capacity and a further 3,554 MW is under construction.

All projects have 25 year PPAs with sovereign rated counterparties such as Solar Energy Corporation of India Ltd. (SECI), NTPC and NHPC.

The operating assets forming part of the portfolio are primarily solar park based projects and have been built following best in class governance, project development, construction, and operations and maintenance practices, resulting in this being one of the highest quality renewable portfolios in the country.

With this acquisition, AGEL will achieve total renewable capacity of 24.3 GW (1) and operating renewable capacity of 4.9 GW.

Acquisition will aid growth of Adani Green Energy Ltd.

This acquisition will make AGEL’s one of the largest renewable energy platforms in the world.

Gautam Adani, Chairman, Adani Group, said “This acquisition is another step towards the vision we stated in January 2020, wherein we laid out our plans to become the world’s largest solar player by 2025 and thereafter the world’s largest renewable company by 2030.”

“We are well on our way to achieve our stated solar portfolio targets four years before the deadline we set for ourselves. The quality of assets that SoftBank and the Bharti Group have built are excellent and I compliment their efforts to support India’s renewable energy transition. We are proud to take their legacy forward,” he said.

Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO, SoftBank Group Corp., said, “We established SB Energy India in 2015 with the goal of creating a market-leading clean energy company to help fuel India’s growth with clean and renewable sources of energy.”

“We are immensely proud of all that we have accomplished. As SBG continues our transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India’s growth,” he said.

Sunil Bharti Mittal, Chairman, Bharti Enterprises, said: “I am delighted that SB Energy has found a good home to carry on its pioneering journey of building a foremost renewable energy company in India. Adani Group has an outstanding track record of building a green energy powerhouse which will get further acceleration with the combination of SB Energy into its fold. I am glad that Bharti could play a constructive role in partnership with SoftBank.”

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