Reliance Industries Limited’s green energy division, Reliance New Energy Solar, has reportedly offered a per-share value of approximately USD 5 to acquire close to 49.14 million equity shares of Sterling and Wilson Solar for roughly USD 245.58 million. The shares constitute around 25.9% stake or the complete public shareholding of the Mumbai-based solar engineering, construction, and procurement company.
As per the draft letter of the open proposal, Reliance Ventures Limited and Reliance Industries will be PAC (persons acting in concert) along with Reliance New Energy Solar. The open proposal is part of the agreement between Reliance New Energy Solar and Shapoorji Pallonji and Company Private Limited of acquiring a 40% stake in Sterling and Wilson Solar.
Under the agreement, Reliance New Energy Solar is predicted to obtain the stake through consolidation of an open offer, a primary investment, and a secondary purchase.
For acquiring the 40% stake, Reliance New Energy Solar will be allotted 29.3 million equity shares at a per-share price of around USD 4.99 which is equal to 15.46% of post preferential share capital.
Furthermore, the company will be acquiring 18.4 million equity shares for a per-share cost of USD 5 which accounts for 9.70% of post preferential share capital. With this open proposal, Reliance New Energy Solar will obtain a 40% stake in Sterling and Wilson Solar for approximately USD 483.97 million.
The acquisition of Sterling and Wilson Solar’s stake comes following Reliance’s takeover of China National Bluestar Group’s REC Solar Holdings for USD 771 million.
Apart from this, Reliance New Energy Solar has also made investments in NexWafe GmbH, a Germany-based manufacturer of solar wafers. It led the Series C financing round of USD 45 million by investing close to USD 29 million.
In June this year, Mukesh Ambani, the Chairman and Managing Director at Reliance Industries Limited revealed that the company would invest around USD 10 billion to construct an advanced energy storage battery manufacturing unit, integrated solar PV factory, fuel cell, and green hydrogen plant in Jamnagar, Gujarat.