Private equity firm Actis LLP has reached an agreement to acquire the solar power portfolio of Indian company Essel Infraprojects Ltd, which includes 685 MW of installed capacity and under-construction projects, Mint has reported.
The deal may be formally announced by December-end, the report said.
Earlier this year, Essel Infra, part of media mogul Subhash Chandra’s Essel Group, had put its solar assets on sale and since then it has been negotiating with potential buyers.
Essel has a total portfolio of 23 projects, under various stages of development, with nearly 310 MW of operational solar power facilities, which it had bid for under the National Solar Mission and state government auctions, and another 375 MW capacity under construction.
The newspaper quoted two sources as saying that Actis has agreed to pay between INR 5500 cr (USD 788m/EUR 692m) and INR 60 cr for the solar assets. One of them has told Mint that a formal deal will be announced by the end of December.
The assets that are being sold have power purchase agreements (PPAs) with tariffs as high as INR 8 per kWh, while the average amounts to INR 5.50/kWh, according to one of the people.
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