Malaysian energy solutions firm Yinson Holdings Berhad (Yinson) has signed agreements to acquire a 37.5% equity stake in Indian independent power producer Rising Sun Energy (RSE) which has cumulative operational capacity of 140 MW (AC) in the Bhadla Solar Park of Rajasthan.
Yinson will pay Rs 554 million (RM32 million) for the stake, and additional funding of Rs 600 million (RM35 million) to repay certain outstanding liabilities of RSE—according to a statement by Yinson.
Rising Sun Energy has two adjoining solar plants in Bhadla Solar Park—with combined generation capacity of 140 MW (AC rated)—which were commissioned in 2017. It has signed 25-year PPAs, running up to year 2042, with state-owned power utility NTPC Limited.
The acquisition was made through Yinson’s wholly owned subsidiary, Yinson Renewables, which was established in year 2019.
“This acquisition is a significant milestone for the company as it marks Yinson’s foray into renewable energy,” said Yinson Group chief executive officer Lim Chern Yuan.
CEO-Renewables David Brunt added, “India is an important growth market for our renewables segment, and we are excited to be playing a part in India’s renewable growth strategy. We look forward to working with the RSE team towards achieving our shared objectives.”
Rising Sun Energy founder and CEO Arunav Sharma commented, “[Yinson] will support RSE’s objectives to grow the business and become a leading renewable energy developer and operator. We believe that Yinson’s support and expertise will help to open up greater opportunities for RSE, both in India and globally.”
Rising Sun Energy, incorporated in 2014, develops, owns, and operates solar power assets to support the energy markets in India.
Yinson Holdings Berhad, listed on the main market of Bursa Malaysia Securities Berhad, has current market capitalisation worth RM5.08 billion as on March 31, 2020.