- Reliance New Energy Solar Ltd, the new energy arm of Reliance Industries Ltd, has agreed to acquire a 40% stake in Indian multinational Sterling and Wilson Solar Ltd (SWSL), an internationally respected solar PV EPC with operations in 24 countries.
- The move comes as Reliance New Energy Solar Ltd aspires to take the lead in enabling cost-efficient green energy by having a presence in the end-to-end PV ecosystem from vertically integrated solar component manufacturing to project development.
- Reliance New Energy Solar (RNESL) also recently announced that it has acquired 100% shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd., for a value of $771 million.
“Reliance New Energy Solar will hold 40.0% of the equity capital of SWSL, consequent to acquisition in the open offer, follow-on acquisition of shares from SPCPL and Khurshed Daruvala, and sell down, if any required,” according to the company statement.
SWSL stake was on sale after the SP group defaulted on bank loans and was facing a severe liquidity crisis. As part of its one-time debt restructuring plan, SP group was to sell assets and utilise the proceeds to repay banks.
“We welcome SWSL as a strategic partner towards building our new energy platform. SWSL, with its engineering talent, deep domain knowledge, global presence, and experience of executing some of the most complex projects globally, will become an important part of our solar value chain,” Mukesh Ambani, Chairman, Reliance Industries, said. “This will enable us to deliver our comprehensive, end-to-end ecosystem leading to cost-efficient green energy for Indian consumers,” he said.
“We are happy to welcome Reliance in Sterling and Wilson Solar Ltd. Through the decades, spanning three generations, the Shapoorji Pallonji group has helped Sterling and Wilson become a global leader in providing turnkey solutions in the energy value chain,” Shapoor Mistry, Chairman of Shapoorji Pallonji & Co. Pvt. Ltd, said. “SWSL is now well-poised to make a valuable contribution, as the world transitions to a low-carbon economy. I believe this partnership is beneficial to all stakeholders and will greatly contribute to making India a leading green energy powerhouse.”
Author: Bryan Groenendaal