Renewable project developer Suzlon Energy has announced that it has completed the sale two of its subsidiaries to CLP Wind Farms (India) Ltd (CLP). In a recent filing, Suzlon stated that it is selling the remaining stake in its subsidiaries S.E Solar Limited (SE Solar) and Gale Solar Farms Limited (Gale) for consideration of ₹765.5 million ($11.1 million) and ₹225.4 million ($3.3 million) respectively.
The BSE filing by the company stated: “In terms of Share Subscription / Share Purchase and Shareholders’ Agreement executed by the company (Suzlon) and CLP Wind Farms (India) Private Ltd (CLP) with SE Solar Ltd and (b) Gale Solarfarms Ltd (Gale), the subsidiaries of the company, the Company has completed sale of securities of SE Solar and Gale held by the Company to CLP on March 25, 2019 and accordingly SE Solar and Gale have ceased to be subsidiaries of the Company.”
Suzlon also stated that the turnover of Gale for the financial year ending March 31, 2018, was ₹7.2 million ($104,178) and the net worth of Gale as on March 31, 2018, was ₹320.3 million ($4.65 million). The turnover of SE Solar for the same year was ₹544.3 million ($7.9 million) while the net worth of SE Solar was estimated at ₹1.59 billion ($23.1 million).
In its statement, Suzlon added that this transaction would not fall under the related party transaction as CLP does not belong to either any promoter or promoter group or group of companies.
CLP had forayed into solar energy projects by acquiring 49 percent stake in SE Solar in December 2017. The company operates a 100 MW solar project located in Veltoor, Mahbubnagar district in Telangana. The power generated from this project is being sold to Telangana Southern Power Distribution Company Limited.
CLP had acquired 49 percent stake in Gale from Suzlon in September 2018. Gale operates a 50 MW solar power project in Dhule district of Maharashtra. The project is contracted under a 25-year power purchase agreement with Solar Energy Corporation of India Limited.
Suzlon has been involved in several other deals over the last year.
In September 2018, the two firms had entered into a partnership to develop 70 MW of grid-connected solar PV projects – 50 MW and 20 MW in Dhule, located in the state of Maharashtra. Per the agreement signed between CLP and Suzlon, CLP had agreed to acquire 49 percent stake in Gale Solarfarms and Tornado Solarfarms, two special purpose vehicles (SPV) set up by Suzlon. In November 2018, Suzlon completed the sale of Tornado Solarfarms to CLP for ₹324.9 (~4.61) million.
In November 2018, Canadian Solar acquired the remaining 51 percent stake in two solar power projects: Amun Solarfarms and Avighna Solarfarms, from Suzlon Energy for a total of ₹280.11 million (~$3.9 million). Initially, Canadian Solar had acquired a 49 percent stake in Amun and Avighna for a total sum of ₹260.42 million (~$3.6 million).
In January 2019, AMP Solar, a Canadian renewable developer, acquired the remaining 51 percent stake in Rudra Solarfarms, a special purpose vehicle built by Suzlon to execute the 15 MW grid-connected solar photovoltaic project at Achampet in Telangana. In December 2016, AMP Solar had acquired a 49 percent stake in Rudra Solarfarms for a cash consideration of ₹140 million (~$1.97 million).
Suzlon reported a net loss of ₹2.8 billion (~$38.86 million) in the second quarter of FY19.
Image credit: Suzlon