The stake sale could be valued at more than $1 billion, reaching up to nearly $1.5 billion.
Canada’s Brookfield Asset Management Inc. is in talks to buy a majority stake in Hyderabad-based Mytrah Energy as the alternative assets manager looks to make its first renewable investment of more than $1 billion in India, said three people aware of the development to Mint.
Brookfield has been engaged in talks to acquire a majority stake in Mytrah and they are currently conducting due diligence on the company’s portfolio of renewable assets, one of the people cited above said to the English Daily.
The stake sale could be valued at more than $1 billion, reaching up to nearly $1.5 billion given the size of Mytrah’s portfolio, he added. Mytrah has a portfolio of around 1.6 GW, the person said.
A major investment
If successful, the Brookfield-Mytrah deal will also be the largest transaction in the Indian renewable space in terms of the size of the portfolio. Previous mega deals in the space include ReNew Power’s acquisition of 1.1 GW portfolio of Ostro Energy in 2018at approximately $1.54 billion and Tata Power Renewable Energy’s acquisition of 1.14 GW portfolio from Welspun Renewables in 2016 for close to $1.4 billion. The second person cited above said a potential deal will help repay a large loan raised by Mytrah from the Piramal group.
If the deal goes through, it will be the first major renewable investment by Brookfield in India. Brookfield owns around 300 megawatts of solar assets in India, but it added the portfolio following the global acquisition of SunEdison’s yieldco Terraform Global Inc., which it acquired for $750 million in December 2017. Terraform had a portfolio of 952 MW of solar and wind assets in Brazil, India and China.
In September 2017, Mytrah raised ₹1,800 crore ($277 million) from the Piramal Group through non-convertible debentures. It used the funds to provide an exit to existing investors: IDFC Alternatives Ltd, AION Capital, Merrill Lynch and Goldman Sachs, besides meeting its growth capital needs.