SP Infra wins strategic investment
Global investment firm KKR and leading infrastructure developer Shapoorji Pallonji Infrastructure Capital (SP Infra) have signed US$204 million definitive agreements for KKR to acquire five solar energy assets from the latter.
The portfolio comprises of assets with a capacity of 169MWp in Maharashtra and assets with a capacity of 148 MWp in Tamil Nadu.
The deal is for total consideration of Rs.15.54 billion (approximately US$204 million).
“We are truly pleased to extend our Infrastructure franchise in Asia and India through this investment in a world-class portfolio of fully operational solar energy projects,” David Luboff, Head of Asia Pacific Infrastructure at KKR, said on 27 Apr 2020 announcing the deal.
“Given the growing demand across Asia Pacific for sustainable energy solutions, we also see this as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development.
“Looking ahead, we are excited to explore even more renewable energy opportunities in India and overseas,” he said.
“Given the government’s ambitious target of achieving 175GW of renewable energy capacity by 2022, we believe this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India,” said Sanjay Nayar, CEO of KKR India.
Mukundan Srinivasan, Managing Director of SP Infra, said, “This deal further demonstrates SP Infra’s continued track record of developing high-quality infrastructure assets in its chosen spaces, creating value for further growth in its businesses, and be the partner of choice for high-quality international investors like KKR.”
With a legacy of 154 years, the Shapoorji Pallonji Group is based in Mumbai and operates in over 70 countries with a global turnover of over US$5 billion.
SP Infra is the infrastructure development arm with assets and businesses in the renewable and gas-based power, highways, port and terminals in India and overseas.
India is a key part of KKR’s Asia Infrastructure strategy, and this announced transaction is the firm’s second investment in the country as part of its dedicated Infrastructure strategy.
EY acted as KKR’s M&A advisor and AZB & Partners and Simpson Thacher acted as KKR’s legal advisors. Edelweiss, Khaitan & Co. and PwC acted as SP Infra’s respective M&A, legal and tax advisors. fiinews.com
