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

Reliance New Energy Solar has signed agreements with Shapoorji Pallonji and Company (SPCPL) and Khurshed Daruvala for acquiring a stake of 40% in Sterling and Wilson Solar (SWSL) for around INR 2,850 crores ($380 million).

Sterling and Wilson Solar, which is part of the Shapoorji Pallonji group, is an India-based pure-play solar engineering, procurement and construction (EPC) solutions provider. It offers EPC services around the world, mostly for utility-scale solar power projects and focuses on the design and engineering of projects and oversees the entire process of the project’s execution, from concept through commissioning.

Reliance New Energy Solar, which is a recently created subsidiary of Reliance Industries, will acquire the stake in Sterling and Wilson Solar via a combination of primary investment, a secondary purchase, and open offer.

The company will first take part in Sterling and Wilson Solar’s preferential allotment of 2.93 crore equity shares at a price of INR 375 per share. This will be equivalent to 15.46% post preferential share capital.

Reliance New Energy Solar will then acquire 1.84 crore equity shares, which is a stake of 9.7%, from Shapoorji Pallonji and Company at the same price of INR 375 per share.

Subsequently, Reliance New Energy Solar will make an announcement to the public shareholders of Sterling and Wilson Solar to acquire up to 4.91 crore equity shares, which is equivalent to a stake of 25.9%. This will be executed in accordance with SEBI takeover regulations.

Sterling and Wilson Solar is said to have executed more than 11GW of solar turnkey projects across the globe. The company has more than 50 years of experience in engineering.

The Indian firm, which also offers operations and maintenance services for solar power plants, has a workforce of around 3,000 people and a footprint across 24 countries. Its solar turnkey solutions include design, procurement, construction and project management, as well as operations and management.

Khurshed Daruvala — Chairman of Sterling and Wilson Solar said: “The history of Sterling and Wilson dates to the 1920s. We have come a long way since then and have always stayed true to our core values of delivering high quality engineering solutions to our customers.

“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 and excitement, and we look forward to becoming part of creating history.”

Reliance Industries said that by holding a stake in Sterling and Wilson Solar, it gets access to top talent, engineering and project management skills, to complement its own expertise in the fields of digital technology, engineering, procurement and project execution.

Mukesh Ambani — Chairman of Reliance Industries said: “We welcome SWSL as a strategic partner towards building our New Energy platform. 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.”

The stake announcement in Sterling and Wilson Solar follows Reliance New Energy Solar’ proposed $771m acquisition of Norway-based solar cells manufacturer REC Group.