Shapoorji Pallonji Infra to sell 317-MW solar assets to KKR for Rs 1,554 cr

Infrastructure developer Shapoorji Pallonji Infrastructure Capital (SP Infra) on Monday announced a Rs 1,554-crore deal with global investment firm KKR to sell five solar assets with a total capacity of 317 megawatts.

According to a company statement portfolio comprises 169 megawatts (MW) in Maharashtra and 148 MW in Tamil Nadu.

The SP Infra has the signed definitive agreements with KKR, under which the company will sell five operational solar energy assets to KKR for a total consideration of Rs 1,554 crore (USD 204 million), the company said.

More details of the investment have not been disclosed. The transaction is subject to customary approvals.

 

Mukundan Srinivasan, Managing Director of SP Infra, said This deal further demonstrates SP Infra's continued track record of developing high-quality infrastructure assets in its chosen spaces, creating value for further growth in its businesses, and be the partner of choice for high-quality international investors like KKR.

KKR makes its investment through its infrastructure fund.

Given the growing demand across Asia Pacific for sustainable energy solutions, we also see this as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development, David Luboff, Head of Asia Pacific Infrastructure at KKR, said.

The fund is looking to explore even more renewable energy opportunities in India and overseas, he said.

Sanjay Nayar, CEO of KKR India, added that this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India.

India is a key part of KKR's Asia Infrastructure strategy, and this announced transaction is the firm's second investment in the country as part of its dedicated Infrastructure strategy.

Edelweiss Financial Services acted as the exclusive financial advisor to SP Infra for the deal.

Khaitan & Co. and PwC acted as SP Infra's legal and tax advisors. AZB & Partners and Simpson Thacher acted as KKR's legal advisors and EY acted as their M&A advisor.

Shapoorji Pallonji Group is based in Mumbai and operates in over 70 countries with a global turnover of over USD 5 billion.

SP Infra is the infrastructure development arm of the group with assets and businesses in the renewable and gas-based power, highways, port and terminals in India and overseas.