Yinson through its wholly-owned subsidiary Yinson Renewables (S) Pte Ltd, has entered into an agreement to acquire additional 57.5% equity interest in Rising Sun Energy Private Limited (“RSE”), an India-incorporated company with two operational solar plants in the Bhadla Solar Park, Rajasthan, India.
Yinson will pay INR1.1 billion (RM61 million) for the stake, subject to completion conditions. Upon completion of the transaction, Yinson will hold a controlling stake of 95.0%, bringing the Group’s total investment in RSE to approximately INR2.3 billion (RM126 million). Accordingly, Yinson will consolidate RSE as a subsidiary in its financial statements.
Yinson had acquired a 37.5% stake in RSE in March 2020, a transaction that marked the Group’s entry into the renewables 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 expire in 2042, are signed with NTPC Limited – India’s largest power utility, majority owned by the Government of India.
This transaction is in line with Yinson’s strategies for its renewables division, established in 2019. The acquisition supports the Group’s vision of becoming a global energy solutions provider, specifically relating to its diversification into renewable energy generation assets.
“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. As always, this investment follows our prudent investment criteria to add value, reflecting carefully managed risks,” said Yinson Group Chief Executive Officer Lim Chern Yuan.
David Brunt, Yinson Chief Executive Officer for Renewables commented, “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.”
Arunav Sharma, Founder & Chief Executive Officer of Rising Sun Energy commented, “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.”