CPPIB is said to explore buying out ReNew energy shareholders

Wind turbines near Schwedt, Germany, on Monday, March 20, 2023. Germany's economy will probably shrink in the first quarter of the year, according to the ZEW institute's gauge of expectations, as concerns over risks in the banking sector add to headwinds from inflation, even as the rate should decline "significantly", the Bundesbank said. Photographer: Krisztian Bocsi/Bloomberg

Canada Pension Plan Investment Board is exploring buying the shares of ReNew Energy Global Plc that it doesn’t already own and taking the Nasdaq-listed firm private, according to people with knowledge of the matter.

The asset manager is in talks with advisers to weigh a tender offer, according to the people, who asked not to be identified discussing confidential information. CPPIB is the controlling shareholder in ReNew, the people said, adding that talks are ongoing and no final decision has been reached.

Delisting of the Gurugram, India-based power producer will give CPPIB greater control over the firm that competes with deep-pocketed rivals. India presents a massive opportunity for clean energy developers as it aims to almost triple non-fossil fuel power capacity to 500 gigawatts by 2030.

A spokesperson for CPPIB said the company will not comment on market speculation, while ReNew’s spokesperson declined to comment.

Renew’s shares closed at $4.39 a piece on Thursday, giving the company a market capitalization of $1.83 billion. The stock fell to a record low earlier this month.

CPPIB bought $268 million worth of ReNew shares from Goldman Sachs this month, giving the Canadian firm a stake of 51.6%, according to the Business Standard newspaper. ReNew’s other backers include Abu Dhabi Investment Authority, according to data compiled by Bloomberg.