Reliance New Energy Solar Limited (RNESL), a wholly owned subsidiary of Reliance Industries Limited (RIL), has agreed to purchase a 40 per cent share in Sterling and Wilson Solar from Shapoorji Pallonji and Company Private Limited (SPCPL) through a combination of primary investment, secondary purchase, and an open offer for around Rs 28 billion. Reliance will benefit from the acquisition in terms of personnel, engineering, project management, execution skills, and digital technologies. This will also aid Reliance in the development of giga-scale solar energy capacity in India and worldwide.
RNESL will receive 29.3 million equity shares at Rs 375 per share, equal to 15.46 per cent post preferential share capital, to acquire the 40 per cent stake. RNESL is also expected to purchase 18.4 million equity shares at a price of Rs 375 per share, accounting for 9.70 per cent of the post-preferential share capital. The company will make an open offer to Sterling & Wilson Solar’s public shareholders for up to 49.1 million equity shares, representing 25.9 per cent of the company’s total share capital. Reliance had legal counsel from AZB and K Law, accounting and tax diligence counsel from Ernst & Young, and finance counsel from Edelweiss. Sterling and Wilson, as well as the selling stockholders, received financial advice from DAM Capital and legal advice from Desai & Diwanji.
Earlier this month, RNESL announced the acquisition of a 100 per cent stake of REC Solar Holdings from China National Bluestar. The enterprise value for the acquisition is $771 million. The acquisition would provide RIL with a ready global platform and the opportunity to expand in important green energy markets around the world, including the US, Australia, Europe, and Asia.