Reliance New Energy Solar becomes promoter in Sterling and Wilson Renewable Energy – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/companies/reliance-new-energy-solar-becomes-promoter-in-sterling-and-wilson-renewable-energy/article38105435.ece

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Reliance ccquires 15.46 per cent stake through preferential allotment of shares

Reliance New Energy Solar Ltd, a wholly-owned unit of Reliance Industries Ltd, has become one of the promoters of Sterling and Wilson Renewable Energy Ltd by acquiring a 15.46 per cent stake through a preferential allotment of shares.

The preferential allotment was priced at ₹375 a share and the transaction closed on December 30, Sterling and Wilson Renewable Energy (previously known as Sterling and Wilson Solar Ltd) said in a regulatory filing to the stock exchange.

In October last year, Reliance New Energy Solar said it had signed definitive agreements with Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala, and Sterling and Wilson Solar Ltd (SWSL) to acquire 40 per cent stake in SWSL through multiple transactions.

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The deal involved a preferential allotment of 2.93 crore equity shares (equivalent to 15.46 per cent of the post-preferential share capital) priced at ₹375 a share and acquisition of 1.84 crore equity shares from SPCPL (equivalent to 9.70 per cent post-preferential share capital) priced ₹375 per share, for a combined amount of about ₹1,790 crore.

This will be followed by an open offer to public shareholders of SWSL to acquire up to 4.91 crore equity shares of SWSL, representing 25.9 per cent, in accordance with SEBI’s takeover regulations.

Solar sweat

Reliance New Energy Solar will hold 40 per cent of the equity capital of SWSL consequent to share acquisition in the open offer, follow-on acquisition of shares from SPCPL and Khurshed Daruvala (promoter group).

Reliance New Energy Solar will have the right to nominate two members on the board of the company, and the current promoter and promoter group shall have the right to nominate two individuals on the board.

With 11-plus GW of solar turnkey projects executed globally and more than five decades of engineering experience, SWSL is a leading international EPC and O&M service provider in the renewables sector. The company has a 3,000-strong team and presence across 24 countries, providing solar energy turnkey solutions including design, procurement, construction, project management, and operations and management.

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