Thailand’s PTT Group may invest in Indian renewable energy firm Avaada

Renewable energy/Illustration/ Internet Archive

Thailand’s PTT Group is among companies that have shown interest in buying around 22% stake in renewable energy producer Avaada Energy Pvt. Ltd in a potential equity deal estimated at around $220 million, said two people aware of the development.

Avaada Energy—controlled by entrepreneur Vineet Mittal—has an operational portfolio of 1.2GW with a further 4GW under implementation.

“The ongoing vendor due diligence (VDD) for Avaada Energy will be completed by February, post which a term-sheet with the selected firms will be signed. The plan is to have a binding term sheet by March-end,” said one of the two people cited above requesting anonymity.

The person did not name the other companies in the fray to acquire a stake in Avaada Energy.

VDD is undertaken for sell-side due diligence and involves a detailed investigation and analysis.

“PTT is now considering investing in renewable energy on many projects in the targeted countries including India. We are still not able to disclose any further information about the projects under study,” a PTT Group spokesperson said in an emailed response.

Mint earlier reported about Avaada Energy appointing Bank of America to handle the sale process. The process couldn’t start as the pandemic and strict curbs to control its spread stopped air travel, thereby impacting some of the ongoing deals in India’s green energy space.

Spokespersons for Bank of America and Avaada Energy declined to comment.

PTT Group has separately shown interest in buying a stake from Goldman Sachs Group in ReNew Power Ventures Pvt. Ltd.

PTT’s plans for Avaada reflect growing interest of global oil and gas majors to invest in India’s emerging green economy as the conventional hydrocarbon space undergoes technological disruptions amid a growing focus on environmental, social and governance (ESG) investing.

A case in point being Malaysia’s state-run oil and gas firm, Petroliam Nasional Bhd or Petronas acquiring Amplus Energy Solutions Pvt. Ltd in 2019. Also, French energy giant Total formed an equal joint venture with Adani Green Energy Ltd. Petronas is also looking to buy about a 10% stake in Tata Power Renewable Energy Ltd, in addition to investing in Tata Power’s renewable energy infrastructure investment trust. Italy’s Eni SpA, Norway’s Statoil ASA, Royal Dutch Shell Plc and Russia’s Rosneft are among other global oil majors that have shown interest in India’s clean energy space.

This interest also comes in the backdrop of India’s power demand hitting an all-time high of 189.6GW in December, and the government working to introduce next-generation power sector reforms to free electricity distribution sector of entry barriers and licensing for distribution and supply. This has also resulted in growing private sector interest in buying power distribution companies, as evident from Torrent Power placing the highest bid for the discoms of Dadra and Nagar Haveli, and Daman and Diu.

This article was first published on livemint.com.

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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.