Keppel considers Warburg Pincus stake in CleanMax
NEW DELHI : The Singaporean conglomerate Keppel Corp. is among the contenders for Warburg Pincus LLC’s majority stake in rooftop solar power producer CleanMax Enviro Energy Solutions Pvt. Ltd., said two people familiar with the development.
The proposed transaction is valued at around $ 200 million, with Rothschild handling the sale process, the people named above said, requesting anonymity. The value of the transaction includes new investments in Mumbai-based CleanMax, they said.
“The contours of the deal involve the sale of Warburg Pincus’ stake and raising more capital for future investments,” said one of the two people named above.
Mint could not immediately determine the names of the other CleanMax contenders.
The potential deal could rank among the largest to date in solar roofs in India, highlighting the growing consolidation of the commercial and industrial (C&I) segment. Given the regulatory risks associated with green energy contracts and their application in multiple states, investors are increasingly turning to the C&I space as it is typically isolated from risks such as reduced energy supply. electricity and tariff purchases by public distribution companies (discounts).
In July 2017, CleanMax said it had secured up to $ 100 million in equity funding from Warburg Pincus. Other investors in CleanMax are International Finance Corp. (IFC) and UK Climate Investments LLP (UKCI), a joint venture between Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. UKCI is managed by Macquarie Infrastructure and Real Assets.
Kuldeep Jain, Founder and CEO of CleanMax, did not respond to phone calls, texts and email queries. Spokesmen for Warburg Pincus and the Macquarie Group declined to comment.
An external Rothschild spokesperson said in an email response: “I have been mandated by the directors, M / S Rothschild & Co., Global Advisory, to report that the company has no comments to offer on your mail.”
Questions emailed to Keppel Corp. and IFC on Wednesday evening went unanswered until the time of going to press.
With an annual turnover of S $ 6.6 billion, Keppel is active in activities such as offshore and marine, energy and environment, connectivity, urban development and management of active.
The potential deal comes against the backdrop of distributed renewable energy production that is attracting strong investor interest as the market has few developers with large portfolios. CleanMax’s operational capacity has grown from 24 MW in 2015-16 to around 805 MW now.
CleanMax’s portfolio includes 380 MW of large-scale solar farms in Karnataka and Tamil Nadu that provide electricity to corporate clients and 220 MW of rooftop solar projects. It has also expanded its portfolio in West Asia, with a 30 MW portfolio in the United Arab Emirates and plans to continue its expansion in South East Asia. He also got his first project in Thailand.
“Warburg Pincus, the main financial sponsor of CleanMax, has been looking to step down for some time now,” said the second person cited above.
Mint reported on October 25 that Warburg Pincus was exploring the sale of the stake.
Despite headwinds, India’s clean energy space has remained largely unaffected by the pandemic. Actis Llp is set to purchase a controlling stake in 500 MW of solar projects in India owned by state-controlled Finnish electricity company Forum Oyj, as Mint reported earlier.
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