HQ Team
January 18, 2023: Adani Renewable Energy Holding Two, a wholly-owned subsidiary of Adani Green Energy, announced it has entered into a binding term sheet to acquire 50% equity in Essel Saurya Urja Company of Rajasthan for INR 150 million.
In the all-cash deal, the binding term sheet, signed on January 17, the Government of Rajasthan will hold the rest of the equity. Essel Saurya develops solar parks to enable the setting up of renewable energy generation plants.
A term sheet is a contract between the startup founder and the investor. More or less, it’s like a marriage between the two, the only difference, it’s usually non-binding.
It is only considered “legally binding” when it is mentioned in the term sheet and is agreed upon. This is the case when founders are restricted from making additional negotiations for some time.
The acquisition will expand Adani Green’s footprint in the state of Rajasthan, where it owns and operates a solar park in a joint venture company, Adani Renewable Energy Park Rajasthan Limited, with the Government of Rajasthan.
Deal to complete next month
Essel Saurya owns and operates a solar park with a capacity of 750 MW in the state of Rajasthan.
The two parties may complete the transaction by February 28, 2023. The revenue of Essel Saurya rose to INR 987.71 lakh for the year ended 2022 from INR 37.65 in the year ended 2020.
Adani Renewable Energy Holding Two Limited was publicly incorporated on March 18, 2015.
It is a non-governmental company registered at the Registrar of Companies, Ahmedabad. Its authorized share capital is Rs. 500,000, and its paid-up capital is Rs. 500,000. It is involved in the production, collection and distribution of electricity.
