After months of speculation, SoftBank is ready to exit India’s renewable energy business. The Japanese investor will sell its entire stake in SB Energy to a competitor.
According to regulatory filings, SoftBank is set to sell its entire stake in SB Energy to Adani Green Energy, one of India’s largest renewable energy companies. Bharti Enterprises is also expected to sell its 20% share in the joint venture which, at one point, also had Foxconn Technologies as a partner. The total value of the transaction is reported at US$3.5 billion, including debt.
With this acquisition, Adani Green Energy will add 4.9 gigawatts of renewable energy capacity to its burgeoning portfolio. Adani Green Energy will now have 24.3 gigawatts of renewable energy capacity in its portfolio, just 0.7 gigawatts short of the 25-gigawatt target it had set for 2025.
SoftBank had entered the Indian renewable energy market in 2015 with high ambitions. It had partnered with Bharti Enterprises and Foxconn Technology to invest US$20 billion to set up 20 gigawatts of renewable energy capacity in India.
Over the last few months, SoftBank has been in discussion with the Canadian Pension Plan Investment Board (CPPIB) for the stake sale. According to media reports, the pension board had set a number of conditions to execute the deal, including timely commissioning of projects and SoftBank taking responsibility of all future penalties.
Adani Green Energy shares rallied to all-time high of Rs 1,315 (US$18.05) a piece after the company filed a note with the stock exchanges. The shares have already rallied 23% since the start of this year.