Page 7 - AsiaElec Week 12 2021
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AsiaElec MERGERS & ACQUISITIONS AsiaElec
India’s ReNew Power agrees
merger to raise funds
INDIA INDIA’S ReNew Power has agreed to merge with central and state government agencies, scale,
US-based blank cheque company RMG Acqui- technological innovation and strong financial
sition Corporation II (RMG II) to form ReNew position should enable ReNew to take advantage
Energy Global. of the incredibly positive trends in the Indian
The new company, valued at about $8bn, will power market over the next decade and beyond.”
become a publicly listed company on NASDAQ. ReNew Energy Global’s pro forma consoli-
The deal is expected to bolster ReNew’s posi- dated and fully diluted market capitalisation is
tion in solar and wind energy generation in estimated at around $4.4bn. The deal will bring
India, giving the company access to funds for estimated gross cash proceeds of about $1.2bn
medium-term growth opportunities and also to to the combined firm. This will come from some
reduce debt. $345m in cash held in trust by RMG II and a
ReNew Power, established in 2011, has an private investment in public equity (PIPE) of
aggregate renewable generation capacity of $855m at a subscription price of $10 per share.
around 10GWe, including capacity already PIPE investors include funds and accounts man-
secured in competitive bids, and a portfolio of aged by BlackRock, BNP Paribas Energy Transi-
more than 100 operational utility-scale wind tion Fund, TT International Asset Management
and solar energy projects in nine Indian states. and TT Environmental Solutions Fund, among
Its solar energy projects serve 150 commercial others. The company calculates the net primary
and industrial customers across India. proceeds from the deal at $610mn.
The company has been backed by invest- The deal should be completed in the second
ments from Goldman Sachs, the Canada Pen- quarter of 2021, subject to approval by the Com-
sion Plan Investment Board (CPP Investments), petition Commission of India, RMG II’s share-
JERA and Abu Dhabi Investment Authority. holders, and other customary closing conditions.
Following the merger, ReNew’s management ReNew founder, chairman and CEO, Sumant
and investors will together own around 70% of Sinha, said: “Over the next decade, ReNew plans
the combined entity. ReNew Power’s leadership to maintain its track record of market share
will remain unchanged growth and contribution to the greening of the
RMG II CEO and director Bob Mancini Indian power sector, and to help meet the Indian
said: “Our diligence on ReNew confirmed that government’s ambitious renewable energy tar-
the company was not only the leading, but the gets. Over time, we will expand our capabilities
best-positioned renewable energy firm in India.” even further, with utility-scale battery stor-
He added: “Its commitment to measured growth age, and customer focused intelligent energy
through long-term partnerships with Indian solutions.”
COAL
China’s Mongolian coking coal imports fall
CHINA CHINA’S February coking coal imports from Mongolian coking coal exports have bene-
Mongolia fell by 20% from January as COVID- fited from the Chinese ban on Australian coking
19 controls limited the number of trucks cross- coal brought in because of political disputes.
ing the China-Mongolia border, Argus Media China reportedly imported an overall
has reported. 3.23mn tonnes of coking coal in February, up
January-February imports from Mongolia by 3.5% from 3.12mn tonnes in January, accord-
rose y/y by 46% to 3.92mn tonnes. ing to Chinese customs data. January-Febru-
Chinese-Mongolian border crossings were ary imports fell by 58% on the year to 6.35mn
shut down as part of measures brought in against tonnes.
the pandemic.
Week 12 •24 March•2021 www. NEWSBASE .com P7
