Macquarie calls off plans to sell renewable energy company Vibrant Energy

The plan was called off due to a discrepancy in the valuation of Vibrant Energy, which has an enterprise value of $500 million

Australia's Macquarie Asset Management has cancelled its plans to divest the renewable energy platform Vibrant Energy due to a discrepancy in valuation during negotiations, as reported by the Economic Times.

Previously engaged in discussions with various entities, including Bain Capital, Sun Energy, and Vitol, Vibrant Energy sought an enterprise value of $500 million. According to the ET report, JP Morgan guided the sale process.

Vibrant Energy, a constituent of Macquarie's Green Investment portfolio, currently operates and supplies 1.9 GW of renewable energy solutions to corporate clients in India, with an additional 3 GW in its active pipeline.

However, Vibrant has opted to proceed with its ongoing projects and defer the sale of the business to a later date. It specialises in developing open-access renewable energy solutions, encompassing both wind and solar, tailored for corporate customers.

 

Business Standard was unable to independently verify the report.

Blueleaf Energy holds approximately 70 per cent stake in Vibrant, being a part of Macquarie's Green Investment Group, while the remaining shares are held by US-based ATN International. Blueleaf Energy Asia ventured into the Indian market in 2020 through the majority acquisition of Vibrant Energy Holdings from ATN International. Macquarie's GIG is actively developing a portfolio of 90 gigawatts (GW) across 25 global markets.

It was reported earlier that Vibrant has secured power purchase agreements (PPAs) with Amazon for a renewable energy capacity production of around 500 MW in India. Additionally, it has entered into a long-term PPA with Saint-Gobain India to establish a 75 MW wind-solar hybrid project in Madhya Pradesh and with Sify Technologies for a combined capacity of 231 MW in solar and wind Energy.

For the construction of 300 MW wind-solar hybrid projects in Madhya Pradesh and Karnataka, Vibrant secured approximately Rs 2,200 crore in project financing from Power Finance Corporation.

Macquarie Group has been actively involved in India for nearly two decades, investing around $2.5 billion in equity capital in infrastructure companies. The commercial and industrial sector (C&I), which constitutes half of the country's energy demand, is experiencing rapid growth.