ReNew Energy Receives USD 2.82 Billion Proposal from Consortium to Go Private

ReNew Energy Global Plc, India's second-largest renewable energy company, has received a non-binding proposal from a consortium led by Abu Dhabi Future Energy Company PJSC-Masdar, Canada Pension Plan Investment Board (CPP Investments), Platinum Hawk C 2019 RSC Ltd. (a subsidiary of the Abu Dhabi Investment Authority, ADIA), and ReNew's Founder, Chairman, and CEO, Sumant Sinha, to acquire the entire issued and to be issued share capital of the Company not already owned by the Consortium, for a purchase price of USD 7.07 per share.

This was revealed by the firm in its US Securities and Exchange Commission's filing (SEC). The total value of the proposal is estimated to be around USD 2.82 billion. The proposed purchase price represents an 11.5 percent premium over ReNew’s last closing price of USD 6.34 on NASDAQ.

The firm further said in its SEC filing  that in response to this proposal, ReNew's Board of Directors has formed a Special Committee, chaired by Lead Independent Director Manoj Singh, which includes six independent non-executive directors. This committee has been tasked with evaluating the offer, along with other potential strategic options, to ensure the best outcome for all shareholders. To aid in this evaluation, the committee has engaged Rothschild & Co as its independent financial advisor and Linklaters LLP as legal counsel.

ReNew Energy operates 10.3 GW of renewable energy assets in India, including solar, wind, hydro, and hybrid projects. It has been reported that the firm has seen its stock drop by nearly 18 percent in value this year before the proposal was made.

Further, as per reports, the announcement of the offer led to a significant spike in ReNew's shares, which surged 17.7 percent, closing at USD 7.46 on December 11, exceeding the offered price. The consortium emphasised that the proposed buyout would provide 'immediate liquidity not available in public markets' to shareholders.

While the proposal is still under review, ReNew’s management continues to focus on the company’s operations, supporting the evaluation process as needed.

The involvement of Masdar, a UAE state-owned entity, could unlock new funding channels in the UAE and Middle East, enhancing ReNew's capital-raising efforts.

However, a few weeks ago, reports suggested that ReNew Energy Global Plc might exit NASDAQ and shift its listing to Indian stock exchanges, reflecting its focus on the Indian market, especially as the country increasingly prioritizes renewable energy.

This development is part of a broader trend of global interest in India’s renewable energy sector, as the country continues to scale up its clean energy investments.