INOX GROUP SELLS OPERATING WIND FARMS TO LEAP GREEN ENERGY
On 7th March, 2017, Inox Renewables Limited ("IRL"), a wholly owned subsidiary of Gujarat Fluorochemicals Ltd ("GFL") and Inox Renewables (Jaisalmer) Limited (“IRJL”), a wholly-owned subsidiary of IRL, both a part of Inox Group, entered into definitive agreements for the sale of substantially all of their operating wind farms to Leap Green Energy Private Limited ("LGE") and its subsidiaries, on a slump sale basis, for an undisclosed price. The transaction is subject to fulfillment of certain conditions precedent, and is expected to complete over the next few months.
IRL(with its wholly owned subsidiary, IRJL) is one of the leading renewable energy companies in India and together they own operating wind farms in the States of Rajasthan, Maharashtra, Madhya Pradesh and Tamil Nadu, that have a total capacity of ~260MW.
Commenting on the transaction, Deepak Asher, Director and Group Head (Corporate Finance) of the Inox Group of Companies (including IRL, IRJL and GFL), said "Inox Group decided to exit the wind farming business and focus on its core businesses, including that of wind turbine manufacturing. We continue to be focused in helping achieve the Government of India’s goal of 60 GW of wind based generation capacity by 2022 through Inox Wind Limited. This transaction will decrease the leverage of GFL at a consolidated level, by reducing debt of aroundRs. 800 crores that was attributable to the wind farming business, and free up management time to focus on our core businesses."
The Key Promoters of Leap Green Energy, Mr. Rajeev Karthikeyan, Managing Director and Mr. Devanand Vijayan, Executive Director, added that “this acquisition will help increase Leap Green’s operating capacity to 762MW across 4 States, making it amongst the largest independent power producer (wind energy) companies in India. They further added that Leap Green is now gearing itself up to scale its total operating capacity to 2,000MW (2GW) by 2019”.
UBS acted as the sole financial advisor on the transaction. Khaitan & Co advised the Inox Group on the transaction and MD&T Partners advised Leap Green Energy Private Limited and its subsidiaries.