Infrastructure developer, Shapoorji Pallonji Infrastructure Capital (SP Infra) has agreed to five operational solar energy assets to private equity major KKR for ₹1,554 crore ($204 million).
Both firms have signed the definitive agreements under which SP Infra will sell five operational solar assets portfolio comprising of 169 MW in Maharashtra and 148 MW in Tamil Nadu.
Commenting on the deal, Mukundan Srinivasan, managing director of SP Infra, said “This deal further demonstrates SP Infra’s continued track record of developing high-quality infrastructure assets in its chosen spaces, creating value for further growth in its businesses, and be the partner of choice for high-quality international investors like KKR.”
SP Infra is the infrastructure development arm with assets and businesses in the renewable and gas-based power, highways, port and terminals in India and overseas.
David Luboff, head of Asia-Pacific infrastructure at KKR, said, “We are truly pleased to extend our Infrastructure franchise in Asia and India through this investment in a world-class portfolio of fully operational solar energy projects. Given the growing demand across Asia Pacific for sustainable energy solutions, we also see this as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development. Looking ahead, we are excited to explore even more renewable energy opportunities in India and overseas.”
KKR takes a flexible approach to Infrastructure investment in Asia Pacific. The firm has evolved a traditional sector-based approach to infrastructure — spanning assets such as transportation, energy, telecom, water and waste, among other segments — to further consider elements such as physical assets, proximity to the local economy, irreplaceability, sensitivities to economic cycles and governance, among other categories.
Sanjay Nayar, CEO of KKR India, added, “SP Infra and the Shapoorji Pallonji Group are recognized in India and worldwide for the high quality of their renewable energy projects, and given the government’s ambitious target of achieving 175GW of renewable energy capacity by 2022, we believe this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India.”
Further details of the investment have not been disclosed. The transaction is subject to customary approvals. KKR makes its investment through its infrastructure fund.
Edelweiss Financial Services acted as the exclusive financial advisor to SP Infra.
Khaitan & Co. and PwC acted as SP Infra’s legal and tax advisors. AZB & Partners and Simpson Thacher acted as KKR’s legal advisors and EY acted as their M&A advisor.
