Malaysian energy solutions firm Yinson Holdings Berhad has agreed to acquire an additional 57.5% equity interest in Indian independent power producer Rising Sun Energy (RSE), which has a cumulative operational capacity of 140 MW (AC) in the Bhadla Solar Park of Rajasthan.
Yinson will pay INR1.1 billion (RM61 million) for the stake.
“Upon completion of the transaction, Yinson will hold a controlling stake of 95.0%, bringing the Group’s total investment in RSE to approximately INR2.3 billion (RM126 million). Accordingly, Yinson will consolidate RSE as a subsidiary in its financial statements”—read a statement by Yinson.
The acquisition is being made through Yinson’s wholly-owned subsidiary, Yinson Renewables, which was established in the year 2019.
Yinson had acquired a 37.5% stake in RSE in March this year, marking the Group’s entry into the renewables market.
Rising Sun Energy has two adjoining solar plants in Bhadla Solar Park—with a combined generation capacity of 140 MW (AC rated)—which were commissioned in 2017. It has signed 25-year PPAs, running up to the year 2042, with state-owned power utility NTPC Limited.
“The acquisition supports the Group’s vision of becoming a global energy solutions provider, specifically relating to its diversification into renewable energy generation assets,” said Yinson Group chief executive officer Lim Chern Yuan.
CEO-Renewables David Brunt added, “India is one of the world’s most promising markets for renewable energy, and solar energy in particular. With the Indian government having committed to reducing dependence on fossil energy, it presents vast market entry opportunities for investors. With this additional investment, Yinson and RSE will be in a stronger position to capture the growth opportunities presented by this transformation.
“We are looking forward to supporting RSE’s further growth path as part of the Yinson group.”
Rising Sun Energy founder and CEO Arunav Sharma commented, “The transaction is reflective of the long-term nature of Yinson’s ownership in RSE. Most importantly, it serves to establish a clear foundation for strategic growth and operational alignment to become a leading renewable energy developer and operator in India.”
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, had market capitalization worth RM5.08 billion as on March 31, 2020.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.