CLP India, one of the largest foreign investors in the Indian power sector, and domestic renewable energy project developer Suzlon have executed a deal for the sale of Tornado Solarfarms Limited to CLP. The purchase of 100 percent stake in Tornado Solarfarms Limited cost CLP India ₹324.9 (~4.61) million.
In September 2018, the two firms had announced a joint venture (JV) under which CLP India had agreed to acquire 49 percent stake in Tornado Solarfarms Limited, a special purpose vehicles (SPV) set up by Suzlon.
Now, CLP India has acquired the remaining 51 percent stake in Tornado Solarfarms Limited. According to a Bombay Stock Exchange (BSE) filing by Suzlon, “As first part of the transaction, CLP acquired 49 percent stake in Tornado for a cash consideration of ₹159.2 (~$2.26) million. And as the second part of the transaction, CLP acquired balance 51 percent stake in Tornado for a cash consideration of ₹165.7 (~$2.35) million.”
According to Suzlon, “The turnover of Tornado in the previous financial year (FY 18) was ₹60.9 (~$0.86 million), whereas the net worth of Tornado as on March 31, 2018, was ₹140.8 (~$1.99) million.”
The firm reported a net loss of ₹2.8 billion (~$38.86 million) in the second quarter of FY19, ending June. Suzlon is also intending to re-enter the international markets, buoyed by favorable global market circumstances.
This is the third such transaction by Suzlon in the past few months. Recently, Canadian Solar, a global module supplier and solar project developer, acquired 100 percent stake in Amun Solar Farms and Avighna Solar Farms for a total of ₹280.11 million (~$3.9 million) from Suzlon. Initially, Canadian Solar had picked up a 49 percent stake in Amun and Avighna for a total sum of ₹260.42 million (~$3.6 million).
In September 2018, Mercom had reported that CLP India and Suzlon entered into a partnership to develop 70 MW of grid-connected solar capacity. The two companies announced a joint venture (JV) for two solar PV projects of 50 MW and 20 MW in Dhule, located in the state of Maharashtra. Per the agreement signed between the two companies, CLP India had agreed to acquire 49 percent stake in Gale Solarfarms Limited and Tornado Solarfarms Limited, two special purpose vehicles (SPV) set up by Suzlon.
Image Credit: Suzlon