NYSE-listed Azure Power, Macquarie, KKRand ReNew Power are among players weighing a bid for private equity firm Actis-owned renewable energy company, SprngEnergy, according to multiple people aware of the matter.
A successful bidder would have to cough up $1 billion or more to buy Actis’s stake in Sprng Energy, according to sources. The company also has $1 billion of debt, taking the enterprise value of the transaction to over $2 billion.
While Azure Power and ReNew Power have held financing discussions with banks to raise money for a bid, Macquarie and KKRhave approached due diligence advisors ahead of a Christmas deadline for submission of non-binding offers for the company, these people said.
The four possible contenders could be joined by two or three more competitors that could include Canada-based pension funds, these people said.
Final bids for Sprng Energy will need to be submitted by March.
Bank of America Merrill Lynch is the financial advisor to Actis on the sale of the company.