RNESL to acquire 40 percent stake in Sterling & Wilson Solar

by Jonathan Adams
Reliance Industries

Reliance New Energy Solar Ltd (RNESL), said it had executed definitive agreements with SPCPL, Khurshed Daruvala and SWSL to acquire 40 per cent stake post-money in SWSL

India’s Reliance Industries on Sunday announced that its wholly-owned subsidiary Reliance New Energy Solar Ltd (RNESL), will acquire 40 percent stake in Sterling & Wilson Solar Ltd (SWSL), a global pure-play, end-to-end solar engineering, procurement, construction (EPC) solutions provider, through its wholly-owned subsidiary Reliance New Energy Solar Ltd (RNESL).

Reliance New Energy Solar Ltd (RNESL), said it had executed definitive agreements with Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala and Sterling & Wilson Solar Ltd (SWSL) to acquire 40 per cent stake post-money in SWSL through a series of transactions.

The transactions involve preferential allotment of 2.93 crore equity shares (equivalent to 15.46 per cent post preferential share capital) at a price of Rs 375 per share.

The transaction will also involve acquisition of 1.84 crore equity shares by RNESL from SPCPL (equivalent to 9.70 per cent post preferential share capital) at a price of Rs 375 per share.

As part of the deal, a public announcement will also be made by RNESL to the public shareholders of SWSL to acquire up to 4.91 crore equity shares of SWSL, representing 25.9 per cent in accordance with SEBI Takeover Regulations.

RNESL will hold 40 per cent of the equity capital of SWSL, consequent to acquisition in the open offer, follow-on acquisition of shares from SPCPL and Khurshed Daruvala, and sell down, if any required.

Speaking about the transaction, Mukesh Ambani, Chairman of Reliance Industries, said: We welcome SWSL as a strategic partner towards building our New Energy platform. SWSL, with its engineering talent, deep domain knowledge, global presence, and experience of executing some of the most complex projects globally, will become an important part of our solar value chain. This will enable us to deliver our comprehensive, end-to-end ecosystem leading to cost-efficient green energy for Indian consumers.

We have great respect for Khurshed Daruvala and the world class institution that he has built over the years and look forward to collaborating in making SWSL a global EPC and O&M leader, he said.

Shapoor Mistry, Chairman of Shapoorji Pallonji & Co. Pvt. Ltd, said: We are happy to welcome Reliance in Sterling and Wilson Solar Ltd. Through the decades, spanning three generations, the Shapoorji Pallonji group has helped Sterling and Wilson become a global leader in providing turnkey solutions in the energy value chain. SWSL is now well-poised to make a valuable contribution, as the world transitions to a low-carbon economy. I believe this partnership is beneficial to all stakeholders and will greatly contribute to making India a leading green energy powerhouse.

Khurshed Daruvala, Chairman of SWSL said: The history of Sterling and Wilson dates to the 1920s. We have come a long way since then and have always stayed true to our core values of delivering high quality engineering solutions to our customers. Along with the Shapoorji Pallonji Group we have made SWSL a global leader in providing turnkey solutions in the energy value chain. Reliance, with its integrated new energy vision, and a commitment to put India on the global green energy map, provides us a great opportunity to further establish SWSL as the leading EPC solutions provider globally. I am sure this partnership will give SWSL new energy and excitement, and we look forward to becoming part of creating history.

Khurshed Daruvala will continue to be Chairman of the Board and lead the next phase of growth for SWSL.



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