After Orange, Greenko sets its Eyes To Acquire Skeiron

Renewable energy firm Greenko Energy is in final phases of acquiring Pune-based Skeiron Green renewables, soon after closing the deal with Orange. This marks the third acquisition by Greenko Group in India since 2016

Greenko Group has finally finished acquiring Orange Renewable from Singapore’s AT Capital Group for an enterprise value of $850 million, ending weeks of intermittent negotiations.

And now, Hyderabad-headquartered Greenko is reportedly in final negotiations to buy a 385 MW wind energy platform, Skeiron Renewable Energy Pvt, a private company held by Suzlon founder Tulsi Tanti and his family, for $528 million. The assets are in two states, Karnataka and Andhra Pradesh.

Greenko has entered into a definitive purchase agreement to acquire Skeiron Green Renewables. The deal will add approximately $200 million to Greenko’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) in the first full year after close, with further accretion and growth anticipated thereafter.

Anil Chalamalasetty
Anil Chalamalasetty, Managing Director of Greenko

Earlier, Skeiron CEO Pranav Tanti maintained silence and said that they are in talks with multiple parties. However, Anil Chalamalasetty, managing director of Greenko in an issued statement said, “The proposed acquisition of Skeiron and completion of Orange Renewable assets are expected to drive capacity, revenue, EBITDA and overall earnings growth potential for Greenko and its stakeholders. Indian energy markets are transitioning from deficit markets to demand driven contracts requiring reliable, flexible and cost competitive energy. Greenko is focused on building integrated renewable energy assets with storage, which can compete with conventional energy assets like thermal in quality, quantity and cost.”

The two transactions, for a cumulative $1.4 billion, will add an incremental 1.13 GW of wind and solar assets to Greenko’s 3.2 GW operational portfolio. Another 500 MW is expected to get added by March 2019, thereby taking the portfolio close to 5 GW of well diversified and de-risked portfolio of wind, solar and hydro. These developments are expected to revive consolidation in the sector, which had seen a lull in the past few months.

The money changed hands last weekend, marking the closure of the Orange deal, a month after the exclusive contract period for bilateral discussions had lapsed.

Related Post: The acquisition of Orange renewables by Greenko. Funding drives the market

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Sneha Verma

Sneha Verma

Sneha has worked with News agencies such as DD, PTI and ANI and after covering politics, in search for fresh air, she later joined Iamrenew team. She has done her graduation in Journalism & Masscom. from IP university and PGD in HR from TISS.

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