As investments in the solar sector see an upsurge, this renewable space is looking at more merger and acquisition (M&A) activities. A recent addition to this is the plan of Macquarie Infrastructure buying a 320 megawatt (MW) portfolio of solar assets from Hindustan Power Projects (HPPPL), reports Mint.
The sale will benefit both HPPPL and Macquarie as the former will be valued at USD 300 million after the purchase and the latter will get an opportunity to launch an energy platform in India.
HPPPL will also leverage this acquisition by using the funds raised to cut down its debt and for the development of the company’s pipeline of renewable energy projects.
Sources say that Macquarie Infrastructure is also looking at the option of buying more 50MW of assets from HPPPL.
The company, which has developed solar farms across the country, has a target to reach 2 gigawatts (GW) in total solar capacity by 2017.