Italian clean energy company Enel Green Power is likely to acquire controlling stake in Indian renewable energy generator Bharat Light & Power (BLP).
EQ International has reported that Enel Green was in advance negotiations with BLP and may invest about $150 million as fresh equity commitment into the company.
The funds would be used to support the expansion of BLP and would cover debt of about Rs 550 crore, EQ has reported citing unnamed sources.
The company has announced plans to increase its installed capacity from 172 MW at present to 450-500 MW over the next 2-3 years.
According to EQ, the technical and legal aspects of the deal are being chalked out after which an offer will be made. The acquisition is expected to take the equity value of BLP’s wind portfolio to Rs 1,200 crore.
BLP’s existing early stage investors — DFJ, VenturEast and UTI Capital who together own two-third share of the asset — plan to retain their stake in the company. Enel Green hasn’t commented on the deal.
BLP expanded its installed capacity largely through acquisitions since its establishment in 2010. In 2013, it acquired 150 MW operating wind power assets from real estate major DLF.
The company owns other assets in Gujarat and Maharashtra and more projects in Madhya Pradesh and Maharashtra are in the pipeline.
In FY15, the company posted revenue of $17.1 million of which its EBITDA was $13.2 million.
Enel Green, which has assets across the globe, has total installed capacity of about 9,600 MW, which includes wind, solar, hydroelectric, geothermal and biomass projects.
The company operates roughly 740 plants in 15 countries. In April, it signed a two-year MoU with Marubeni of Japan to evaluate business potential in renewable ventures across Asia-Pacific.
Ajith Kumar S