O2 Power to buy Azure's 305MW solar assets in Ayana

The proposed deal is worth about $ 200 million and the sale process is underway by Avendus Capital

European alternative asset managers EQT and Temasek promoted O2 Power and CDC Group plc-backed Aiyana Renewable Power to emerge as pioneers to acquire NYSE-listed Azure Power Global's 305 MW solar assets, two of which develop. Said about is aware of.

A possible deal with the sale process of the International Finance Corporation (IFC) and Canadian pension fund Caisse de dépôt et Placement du Québec (CDPQ) is worth about $ 200 million, with Avend Power's assets running for Avendus Capital.

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This comes against Averus Capital's plan to buy Azure's entire 167 MW solar rooftop portfolio, as Mint previously reported on what could be the largest solar rooftop deals in India.

Investors are more interested in India's green energy space, with the country's electricity demand increasing with earlier levels of Covid. In addition, an increased trajectory in strong power demand, attracting investors, due to efforts such as leveraging power for cooking. India aims to have 175 GW of clean energy capacity by 2022, including 100GW from solar projects.

Mint previously reported in a conversation about private equity investors KKR and Actis that these solar assets should be acquired, with others such as Aiyana, O2, Brookfield and Edelweiss also showing interest.

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Nathan Judge, in an email response, Azure Power's head of investor relations declined to comment.

Ayana Renewable Power managing director and CEO Shivanand Nimbargi declined to comment.

Unanswered emails to an O2 power spokesman remained unanswered late Thursday evening.

In an email response, a spokesperson for Avendus Capital stated, "As a matter of policy, we do not comment on questions of this nature."

Azure Power has a 7 GW portfolio. International Finance Corporation (IFC), the private sector development arm of the World Bank and the German development finance institute DEG are among the other investors listed on the US stock market in India's first renewable energy company Azure Power.

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“O2 Power and Aiyana are the last survivors, with the deal expected to be announced soon. The deal is expected to have an enterprise value of over $ 200 million, ”one of the two people requested alimony.

O2 Power is a $ 500 million renewable energy platform in India targeting approximately 4 GW of solar and wind assets. Established by former ReNew power offices - Parag Sharma, Piyush Mohit, Rakesh Garg and Nimish Aggarwal - O2 Power has already acquired 1 GW portfolio.

"Actis believed that now (Azure Power) was interested in the property," said another person above who did not want to be named.

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Ayana's focus areas are the Indian states of Bihar, Odisha and Assam and South Asian countries such as Bangladesh, Nepal, Myanmar and Sri Lanka. It recently made the third-lowest bid for each unit during an auction conducted by the state-run Solar Energy Corporation of India Limited (Seki), which saw India's solar energy tariff fall to a record low of Rs2.36 per unit. . According to the information available on its website, it has an 800 MW solar portfolio in Andhra Pradesh and Rajasthan.

Deal activity in India's clean energy space continues unabated by distribution companies (discoms) affected by the coronavirus epidemic and tariff-procurement issues, non-availability of lenders. In addition, payment delays and broadcast and connectivity challenges remain.

Some of the deals reported by Mint include the Canada Pension Plan Investment Board, Actis LLP and Brookfield Asset Management Inc., which want to buy Japan's SoftBank Group Corp. stake in SB Energy Holding, which has an Indian solar portfolio of 7.7 GW.

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In addition, Acme Solar Holdings Limited intends to sell 4.84 GW of solar projects in India which could be one of the largest green energy deals in India. Petrolam National Bhid or Petronas, a Malaysian state-run oil and gas company, is also acquiring a 10% stake in Tata Power Renewable Energy Limited, in addition to investing in Tata Power Renewable Energy Limited.

Orix Corp of Japan recently announced the largest foreign clean energy investment of $ 980 million in India to buy a 17% stake in Greenco Energy Holdings.

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