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RIL Unit to buy 40% of Sterling and Wilson via preferential allotment, secondary purchase

Reliance New Energy Solar Ltd (RNESL), a unit of Reliance Industries Ltd (RIL), on October 10 said it will acquire 40 percent of Sterling & Wilson Solar Ltd (SWSL) in a deal underscoring the company's clean energy ambitions.

October 10, 2021 / 10:47 PM IST
Mukesh Ambani. (PC-MoneyControl)

Mukesh Ambani. (PC-MoneyControl)

Reliance New Energy Solar Ltd (RNESL), a unit of Reliance Industries Ltd (RIL), on October 10 said it will acquire 40 per cent of Sterling and Wilson Solar Ltd (SWSL) in a deal underscoring the company's clean-energy ambitions.


RNESL will buy a stake in Sterling and Wilson Solar, a leading solar engineering, procurement and constructions solutions provider, through a combination of primary investment, secondary purchase and open offer, RIL said in a statement.

In the first leg of the deal, RNESL will acquire a 15.46 percent stake in Sterling & Wilson Solar at Rs 375 per share, or roughly Rs 1,100 crore. In the second leg, Shapoorji Pallonji and Khurshed Daruvala, the promoters of Sterling and Wilson, will sell 1.84 crore shares (around 9.7 percent equity) to RNESL at the same price of Rs 375 per share. This will require the Reliance unit to make an open offer to public shareholders for an additional 25.9 percent stake. In case, the open offer fails to push RNESL’s total stake to 40 percent, Shapoorji Pallonji and Daruvala will sell more of their shares to make good the difference.


Shares of Sterling and Wilson closed at Rs 434.8, up 7.3 percent from the previous close, at the Bombay Stock Exchange on Friday.


Daruvala will continue to be chairman of the board and lead the next phase of growth for SWSL, said a statement.

Sterling and Wilson Solar services largely utility-scale power projects and has a global portfolio with a total capacity of 11.4 GWp, including  the world’s largest single-location power plant in Abu Dhabi. It also does O&M for projects totaling 8.8 GWp.

In September, the company had announced that it has given the go-ahead for 66 MWp solar power plant in Jordan. The Al Husainiyah project is expected to reduce carbon emissions by 50,000 tonnes.  At its June quarter results announcement, the management had stated that it expects clients to award more contracts in the December quarter.

Earlier today, RNESL announced the acquisition of REC Solar Holdings, a Norwegian solar panel maker, for an enterprise value of $771 million from China National Bluestar (Group) Co Ltd. In June, RIL said it would invest $10.1 billion in clean energy over three years.