India Grid Trust announced that it has sealed the deal for the acquisition of 100% in FRV Andhra Pradesh Solar Farm-I Private Limited & FRV India Solar Park II – Private Limited from FRV Solar Holdings XI B.V. The Securities Purchase Agreement for this deal was signed on December 18, 2020.
The acquisition of aforesaid solar assets is in line with the IndiGrid investment strategy as provided in the Trust Deed with a focus to ensure stable distribution to unitholders by owning assets with long term contracts.
Enterprise Value of ~Rs. 660 Crore, subject to adjustment on account of movement in cash, tariff receivables, other assets, liabilities outstanding as on valuation date and any other adjustments as specified in the definitive agreements.
IndiGrid will acquire 100% shareholding and management control in FRV I & FRV II subject to the terms of securities purchase and other definitive agreements and requisite regulatory and other relevant approvals like lenders’ approval.
Recently, the KKR & Co-backed India Grid Trust (IndiGrid), India’s only publicly listed infrastructure investment trust (InvIT) in the power sector, had acquired a 74% stake in Parbati Koldam Transmission Co Ltd from Anil Ambani’s Reliance Infrastructure Ltd at a similar price tag of INR 666cr.
For the current deal, Cyril Amarchand and PriceWaterHouse Coopers represented IndiGrid on the transaction. Khaitan & Co and Greenstone Advisors represented FRV Group on the transaction.
FRV I was incorporated on July 14, 2016. FRV I operates 50 MW (AC) solar power plant in Ananthapuramu Solar Park. FRV I entered into PPA with SECI on October 5, 2016 for tenor of 25 years. The asset was commissioned in July 2018. During FY 2019-20, FRV I had a total revenue of ~Rs. 47 Crore
FRV II was incorporated on July 09, 2016. FRV II operates 50 MW (AC) solar power plant in Ananthapuramu Solar Park. FRV II entered into PPA with SECI on October 5, 2016 for tenor of 25 years. The asset was commissioned in January 2019. During FY 2019-20, FRV II had a total revenue of ~Rs. 50 Crore.