ENGIE to buy Rs 1,200 cr stake in Kiran Energy Solar Power

In what could be one of the largest deals in the power sector this year, CNBC-TV18 learns exclusively that French energy major ENGIE, earlier known as GDF Suez, is all set to acquire majority stake in Mumbai based solar power producer Kiran Energy Solar Power for an enterprise value of Rs 1,200 crore. According to sources, ENGIE is in advance talks to acquire 80 percent stake in Kiran Energy from 3 private equity investors who are going to exit completely. In 2010, New Silk Route, Argonaut and Bessemer Venture Partners invested over USD 44 million in Kiran Energy. The private equity investors who jointly hold 80 percent stake in the company could expect to rake in 1.5 times returns on their investment, taking the enterprise value of the company at Rs 1,200 crore. However, ENGIE said “the company is looking at India with a lot of interest, given the country’s huge potential for investment in the infrastructure space. ENGIE will actively consider opportunities in energy space, including renewables energy.” Once the deal is sealed, it will be the second investment for ENGIE after its debut acquisition of 74 percent stake in Meenakshi Energy in 2013. Kiran Energy is a Mumbai based solar power producer founded by KPMG’s former Head of Investment Banking Ardeshir Contractor, having an aggregate operating capacity of 85 MW.