Shell Overseas Investment, a wholly owned subsidiary of Shell, has completed its 100% acquisition of Solenergi Power and, with it, the Sprng Energy group of companies from Actis Solenergi Limited for $1.55 billion.
About half of the $1.55 billion will be cash capex, and the rest will be debt obligations.
Solenergi Power is incorporated in Mauritius and is the direct shareholder of the Sprng Energy group of companies in India. Sprng Energy will retain its existing brand and operate as a wholly owned subsidiary of Shell within Shell’s Renewables and Energy Solutions Integrated Power business.
Headquartered in Pune, Maharashtra, Sprng Energy is a renewable energy platform set up in India by Actis – an investor in sustainable infrastructure, with a total commitment of $450 million of equity from Actis Energy Fund 4 to set up 2.5 GW of renewable energy capacity including solar and wind by 2020. Solenergi Power is incorporated in Mauritius and is the direct shareholder of the Sprng Energy group.
Sprng Energy develops and manages renewable energy facilities such as solar and wind farms and infrastructure assets. Its portfolio consists of 2.9 GW (2.1 GW operating and 0.8 GW contracted) with 7.5 GW of renewable energy projects in the pipeline.
Sprng Energy currently has a portfolio consisting of 2.9 GW, out of which 2.1 GW is operational, and 800 MW is contracted with a further 7.5 GW of renewable energy projects in the pipeline.
The solar and wind assets of Shell acquired through the deal are expected to help triple the company’s renewable capacity in operation and help deliver its Powering Progress strategy and reach its target of becoming a profitable net-zero emissions energy business by 2050.
“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” said Wael Sawan, Shell’s Integrated Gas, Renewables, and Energy Solutions Director.
Earlier this year, Shell announced it would acquire 100% of Next Kraftwerke’s shares, subject to approval by the regulators. As a part of the Renewables & Energy Solutions division at Shell, the German power trader and operator of Virtual Power Plants based in Cologne strengthens its position as a power trader for renewable energies. Next Kraftwerke will operate as a portfolio company in the Shell group under its existing brand and core management team following the acquisition.
According to Mercom’s 1H and Q2 2022 Solar Funding and M&A Report, In 1H 2022, there were 53 solar M&A transactions compared to 54 transactions in 1H 2021. In 1H 2022, the top deal was by Macquarie Asset Management, a consortium with British Columbia Investment Management Corporation (BCI) and MEAG, which agreed to acquire Reden Solar from InfraVia Capital Partners and Eurazeo for an enterprise value of $2.72 billion.