KUALA LUMPUR: Yinson Holdings Bhd has entered into multiple agreements to acquire 37.5% equity interest in an India-incorporated company, Rising Sun Energy Pte Ltd, which has two operational solar plants in the Bhadla Solar Park, Rajasthan.
The agreements were entered through Yinson’s unit, Yinson Renewables (S) Pte Ltd.
“The group will pay 554 million rupees (RM32 million) for the stake, subject to closing conditions, while also providing funding of 600 million rupees (RM35 million) to repay certain outstanding liabilities of Rising Sun Energy,” the energy solutions provider said in a statement today.
The two adjoining solar plants have a combined generation capacity of 140MW (AC rated) and achieved their scheduled commissioning dates in 2017. Rising Sun Energy has signed 25-year power purchase agreements, expiring in 2042, with India’s largest power utility, NTPC Limited, which is majority owned by the Indian government.
The transaction is in line with Yinson’s strategies for its renewables division established in 2019.
The acquisition supports the company’s vision of becoming a global energy solutions provider, specifically relating to its diversification into renewable energy generation assets.
Yinson Renewables chief executive officer David Brunt said India is an important growth market for its renewables segment, and the group is excited to be playing a part in India’s renewable growth strategy.
“We look forward to working with the Rising Sun Energy team towards achieving our shared objectives,” he added.
Rising Sun Energy develops, owns and operates solar power assets to support the energy markets in India.