Published: 11 September 2020 11 September 2020
ORIX Corporation has announced that it has signed a framework agreement with Greenko Energy Holdings (Greenko) regarding partial acquisition of shares in Greenko. In addition to acquiring Greenko’s issued shares from the founders’ group, ORIX will integrate its entire wind power generation business in India into Greenko in exchange for Greenko’s new shares.
Through this plan, ORIX will acquire more than 20 percent of Greenko’s issued shares at closing for a total consideration of approximately US$ 980 million.
In addition to an existing total capacity of about 4.4 GW operating renewable portfolio in India—such as solar, wind, and hydro, Greenko recently announced a 1.2 GW hydro asset acquisition and has additional capacity under construction and in development of over 8 GW. In 2016, ORIX entered India’s wind power business (with a total facility capacity of 873 MW) through a joint investment. The assets were fully acquired by ORIX in 2019.
Going forward, ORIX aims to execute definitive agreements and completion of the transaction by the end of the year subject to investment committee approval after completing due diligence and other legal procedures required.