Avaada Energy Emerges Lead Suitor To Acquire 340 MW Solar Power Assets of Essel Group – EQ Mag Pro

Avaada Energy is owned by Vineet Mittal, the former promoter of Welspun Energy. He left the Welspun Group after selling the entire 1.1 GW renewable energy portfolio of Welspun Energy To Tata Power for $1.4 billion.

Entrepreneur Vineet Mittal-controlled renewable energy firm Avaada Energy has emerged as the front-runner to acquire around 340 MWs of solar power assets owned by the Subhash Chandra-backed Essel Group, multiple industry sources with knowledge of the matter told Moneycontrol.

“The deal is in the final lap and these assets are housed in 9 SPVs ( special purpose vehicles) of Essel Infraprojects located in Maharashtra, Odisha and UP,” one of the persons cited above told Moneycontrol.

A second person said the deal was likely to be struck for around Rs 1,500 crore to Rs 1,600 crore and added that the proceeds would be used by Essel Infra to pay back its bondholders and lenders. At the holdco level, Piramal Capital & Dutch pension fund manager APG Asset Management are the firm’s bondholders while L&T Finance is the lender at the SPV level.

“An official announcement on the proposed transaction can be expected shortly once internal approvals are secured. There were other suitors in the fray earlier but Avaada Energy which now counts a Thai energy major as it’s investor is the lead contender,” added a third person.

All the three persons above spoke to Moneycontrol on the condition of anonymity.

Source : moneycontrol