Waaree Energies’ ₹792 crore deal to acquire Enel Green Power India is reportedly close to collapse.
The January-announced deal involved taking a full 100% stake in EGP India.
Despite uncertainty, Waaree’s shares rose nearly 2% after the report.
Waaree Energies’ plan to acquire the Indian arm of Italy's renewable firm Enel Green Power Development SRL is reportedly on the verge of collapse. The deal, announced in January, was expected to see the solar PV module maker take over a 100% stake in Enel Green Power India Pvt Ltd (EGP India) for ₹792 crore.
The agreement also included a clause under which Waaree Energies would absorb the debt of EGP India.
The Economic Times (ET) on Tuesday reported that some conditions incorporated in the agreement remain unfulfilled and the parties are now discussing terms of a possible breakup.
Following the report, the company, in an exchange filing, said, “The SPA was subject to customary commercial terms, timelines and conditions precedent. Certain commercial terms of the agreement are under review and the Company is in discussions for the same.”
Waaree Energies also noted it would make necessary disclosures at the appropriate time in accordance with Regulation 30 of the Listing Regulations. Following the ET report, the renewable firm’s shares rose as much as 2%. The stock was trading at ₹3,032.85, up 1.65% at 2.42 PM.
“The movement in the share price is market-driven and there is no Unpublished Price Sensitive Information pending disclosure to the stock exchanges. Further, there are no regulatory or legal proceedings being initiated in relation to the aforementioned acquisition,” the company added.
Rome-based Enel decided to exit its India business last year and reportedly appointed HSBC as adviser for the sale. The company has been working to deleverage and streamline operations through an asset disposal programme.
Enel Green Power India operates a renewable platform with about 640 megawatts of net capacity across solar and wind projects, including majority-owned ventures with partners. It also has a project pipeline of roughly 2.5 gigawatts in the country.
Waaree is India’s largest solar photovoltaic module manufacturer, with 13.3 gigawatts of installed capacity.
