Six PE firms including CPPIB, KKR eye Fortum’s Indian solar projects

At least six firms, including Canada Pension Plan Investment Board (CPPIB), Brookfield Asset Management Inc., private equity firms Actis Llp, KKR, Macquarie Group, and Edelweiss Infrastructure Yield Plus Fund, have separately evinced interest in acquiring a majority stake in Finland’s state-controlled power utility Fortum Oyj’s 500 megawatts (MW) Indian solar projects, said two people, requesting anonymity.

Fortum’s move to seek financial investors reflects growing consolidation in India’s clean energy space. With India slowly opening up for business, the deal activity has picked up for the green economy.

The stake sale, run by Kotak Investment Banking, is potentially valued at around €500 million and may rank among the largest in India’s green energy space.

These projects of the third-largest Nordic utility will be brought under a new platform, in which new investors will contribute significant equity.

“Everything put together may be in the region of $900 million. Whoever buys the majority stake will also put the equity in the new platform. There will be a pre-decided equity contribution. Fortum wants to spread meteorological and weather risks. The renewable energy sector needs massive liquidity and, hence, this stake sale,” said the first person.

Spokespersons for Macquarie Group and Actis declined to comment. An external spokesperson for CPPIB said in an emailed response that it does not comment on “speculative reports.” An external spokesperson for KKR also declined to respond to an email. Queries emailed to Brookfield, Edelweiss and Kotak Investment Banking on Thursday remained unanswered till press time.

This article was first published on Livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.