British oil and gas giant Shell has concluded its $1.55bn buyout of Indian renewable energy developer Sprng Energy from investment firm Actis.
The deal was first announced earlier this year and has been executed through Shell subsidiary Shell Overseas Investment.
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Shell Overseas Investment acquired a 100% stake in Actis subsidiary Solenergi Power, through which Actis had owned Sprng Energy.
Of the total deal value, 50% will be reported as cash capital expenditure, while the rest will be assumed as debt obligations.
Established in 2017, Sprng Energy develops and manages renewable energy facilities such as solar and wind farms and infrastructure assets.
The company delivers solar and wind energy to electricity distribution companies in India. Its asset portfolio includes 2.1GWp of operating and 0.8GWp contracted capacity.
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By GlobalDataIn addition, Sprng Energy has 7.5GWp of renewable energy projects in the pipeline.
Under the terms of the deal, Sprng Energy will retain its existing brand and operate as a wholly owned subsidiary of Shell.
It will be part of Shell’s Renewables and Energy Solutions Integrated Power business.
Sprng Energy said that it will continue to be based in Pune, Maharashtra.
The deal will triple Shell’s operational renewable capacity as part of its efforts to further its Powering Progress strategy.
Unveiled last February, the Powering Progress strategy aims to develop an integrated power business that will help the company achieve its target of becoming a profitable net-zero emissions energy business by 2050.
Last month, Shell’s Shell Overseas Investments business unit partnered with Emerging Power, a subsidiary of Nickel Asia Corp, to develop renewable energy projects in the Philippines.
The partners will develop, own, operate and maintain onshore renewable projects in the country, primarily focusing on utility-scale solar photovoltaic (PV) projects.
In June, Shell launched Shell Energy Solutions, a green energy business to serve the residential power market in the US.
