Yinson raises stake in India solar plant to 95%

Yinson Holdings Bhd, via its wholly-owned subsidiary Yinson Renewables (S) Pte Ltd,  has entered into an agreement to acquire an additional 57.5% in a solar plant operator in India, raising its stake to 95%.

Yinson will pay INR1.1 bil (RM61 mil) for the stake in Rising Sun Energy Private Ltd (RSE), an India-incorporated company with two operational solar plants in the Bhadla Solar Park, Rajasthan, India.

With the additional stake, Yinson’s total investment in RSE will amount to some INR2.3 bil (RM126 mil).  Yinson had acquired a 37.5% stake in RSE in March 2020, a transaction that marked its entry into the renewable energy market.

The two adjoining solar plants, which started operating in 2017, have a combined generation capacity of 140MW (AC rated). 25-year power purchase agreements, which expires in 2042, are signed with NTPC Ltd – India’s largest power utility, majority owned by the Indian government.

This transaction is in line with Yinson’s strategies for its renewables division, established in 2019. 

“I am pleased that we have taken this important step towards strengthening Yinson’s position in the renewable energy segment. We believe that this investment will be earnings accretive in the long term, resulting in favourable returns to our shareholders,” said Yinson Group CEO Lim Chern Yuan.

Yinson CEO for renewables David Brunt said, “India is one of the world’s most promising markets for renewable energy, and solar energy in particular. With the Indian government having committed to reducing dependence on fossil energy, it presents vast market entry opportunities for investors. With this additional investment, Yinson and RSE will be in a stronger position to capture the growth opportunities presented by this transformation. We are looking forward to supporting RSE’s further growth path as part of the Yinson group.”

RSE founder & CEO Arunav Sharma said, “The transaction is reflective of the long-term nature of Yinson’s ownership in RSE. Most importantly, it serves to establish a clear foundation for strategic growth and operational alignment to become a leading renewable energy developer and operator in India.”

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