Reliance New Energy Solar Limited (RNESL), the green energy subsidiary of Reliance Industries Limited (RIL), has offered Rs 375 per share to acquire 49.14 million equity shares of Sterling and Wilson Solar for around Rs 18.42 billion. The 49.14 million shares represent a 25.9 per cent equity investment in Sterling and Wilson Solar or the company’s entire public shareholding.
The open offer is part of RNESL’s plan to acquire a 40 per cent share in Sterling and Wilson Solar from Shapoorji Pallonji and Company Private Limited. The company is expected to acquire the stake through a combination of direct investment, a secondary purchase, and an open offer, according to the agreement. RNESL was allotted 29.3 million equity shares at Rs 375 per share, or 15.46 per cent of post preferential share capital, to acquire the 40 per cent interest. The company would also 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. All in all, RNESL would buy a 40 per cent interest in Sterling and Wilson Solar for Rs 36.32 billion in an open auction.
Recently, Reliance purchased REC Solar Holdings from China National Bluestar Group for $771 million. In August 2021, RNESL along with other investors including Paulson & Co. Inc. and Bill Gates announced a $144 million investment in Ambri, an energy storage company based in Massachusetts, USA. The funds will be used to assist Ambri in commercialising and expanding its long-duration energy storage solutions. RNESL would invest $50 million in Ambri to purchase 42.3 million preferred stock shares.