ReNew Energy Global receives $7.07 per share acquisition offer

ReNew Energy Global Plc, a Nasdaq-listed Indian reneweable energy developer, has confirmed receipt of a non-binding acquisition proposal valued at $7.07 per share. The consortium behind this offer includes Abu Dhabi Future Energy Company PJSC-Masdar (Masdar), Canada Pension Plan Investment Board (CPP Investments), Platinum Hawk C 2019 RSC Limited (a subsidiary of Abu Dhabi Investment Authority, ADIA), and the company’s Founder and CEO, Sumant Sinha.

The proposal, dated December 10, 2024, led the ReNew Board of Directors to form a Special Committee to evaluate the offer. This committee, comprising six independent non-executive directors and led by Lead Independent Director Manoj Singh, is tasked with exploring the proposal’s implications and securing the best outcomes for stakeholders. To assist in this evaluation, the committee has engaged Rothschild & Co as financial advisors and Linklaters LLP as legal counsel.

Strategic Significance of ReNew’s Operations

ReNew Energy Global Plc boasts a clean energy contracted portfolio of approximately 16.3 gigawatts (GW) as of November 2024, placing it among the largest globally. The company has established itself as a leading independent power producer in India, providing end-to-end clean energy solutions, digitalisation, storage, and carbon markets. These initiatives are designed to drive energy transition while addressing climate change.

Recent projects underline ReNew’s commitment to innovation and localisation. Earlier this month, the company announced the commissioning of 750 megawatts (MW) as part of a ~1 GW solar project in Rajasthan. The project, constructed using solar panels manufactured in ReNew’s facilities in Jaipur, Rajasthan, and Dholera, Gujarat, aligns with India’s Make in India initiative. The remaining 225 MW is set for completion by January 2025.

Economic and Environmental Impact in Rajasthan

The Rajasthan solar project exemplifies ReNew’s role in driving India’s energy self-sufficiency. With a current investment of approximately ₹21,000 crore (around $2.5 billion) in the state and plans to expand to ₹62,000 crore by 2030, ReNew is poised to become one of Rajasthan’s largest private-sector investors. The solar project in Rajasthan highlights the company’s broader renewable energy portfolio and dedication to clean energy solutions.

Sumant Sinha, ReNew’s Founder and CEO, emphasised the strategic importance of these initiatives. He noted that the company’s solar projects reflect a commitment to scalable, sustainable energy solutions that support Rajasthan’s growth while advancing India’s vision of energy independence. He further highlighted the long-term resilience and economic benefits brought by clean energy solutions.

Special Committee’s Role and Ongoing Operations

While the Special Committee evaluates the proposal from the consortium, ReNew’s executive management will remain focused on maintaining operational excellence. The company’s solar panel manufacturing facilities, which produce 17,000 units daily, are a testament to ReNew’s ability to scale its renewable energy portfolio. These facilities have already created over 1,500 direct and numerous indirect jobs, strengthening local economies.

ReNew’s operational capacity reached 10.4 GW as of November 2024, with an additional ~6 GW committed and over 23 GW in the pipeline. This robust renewable energy portfolio positions the company as a leader in India’s clean energy solutions, particularly in Rajasthan, which hosts over 10 GW of ReNew’s capacity.

Outlook and Strategic Evaluation

The Special Committee’s review of the non-binding proposal will carefully weigh the terms and potential outcomes for all stakeholders. While no assurance can be given about a transaction’s likelihood, further updates will follow as required. ReNew’s continued operational progress and strategic investments demonstrate its unwavering commitment to India’s energy transition and global climate goals. The solar project in Rajasthan serves as a significant milestone in these efforts.