Masdar-Led Consortium Proposes ReNew Energy Acquisition

NASDAQ-listed Indian renewable energy independent power producer (IPP) and solar PV manufacturer ReNew Energy Global has received a takeover proposal from a consortium led by Abu Dhabi Future Energy Company Masdar, and includes the company’s Founder, Chairman and CEO Sumant Sinha.  

Other members of the consortium for this non-binding proposal are the Canada Pension Plan Investment Board (CPPIB), and Platinum Hawk C 2019 RSC Limited as trustee for the Platinum Cactus A 2019 Trust, which is a subsidiary of the Abu Dhabi Investment Authority (ADIA). The consortium may be expanded with more members.  

This group has offered a cash consideration of $7.07/share, an 11.5% premium to the closing share price of $6.34/share on December 10, 2024. It will also be a 22.8% premium to the 30-day volume-weighted average price of $5.76/share.   

According to the company’s US Securities and Exchange (SEC) filing, the proposal will provide the company’s shareholders with immediate liquidity that is not available in the public markets, which will be in the best interests of the company and its shareholders.  

The company board has set up a special committee led by its Lead Independent Director Manoj Singh to consider the proposal.  

ReNew’s current clean energy contracted portfolio stands at around 16.3 GW, comprising 5.5 GW operational and 5.9 GW of committed solar capacity. It also operates a 4 GW solar module factory in Jaipur and a 2.4 GW factory in Dholera. Another 2.5 GW cell plant is currently in trial production in Dholera (see ReNew Energy’s Q2 FY25 Adjusted EBITDA Up 14% YoY). 

For Masdar, this acquisition is part of its strategy to meet its 100 GW renewable energy capacity globally by 2030. Very recently, it completed the acquisition of Greece’s TERNA ENERGY for $3.2 billion as part of the 100 GW strategy target.