Canadian Pension Plan Investment Board (CPPIB) is closing in on ReNew Power to double down on its biggest clean energy bet in the country and become the single largest shareholder, said people with knowledge of the matter. The move follows several months of negotiations.
The transaction, once complete, will give principal shareholder Goldman Sachs a much-needed route to unlock value. Goldman is the original backer of Re-New, the country’s leading renewable power company.
An existing investor, CPPIB is looking to raise its stake to over 40% by buying an additional 24% stake from Goldman Sachs Group, which had backed firstgeneration entrepreneur Sumant Sinha to create a green energy platform in 2011 with a $200 million commitment. The Wall Street investment bank is currently the largest shareholder with a 48% stake.
CPPIB and Abu Dhabi’s sovereign wealth fund Abu Dhabi Investment Authority each own 16%, Japan’s gas and utilities major JERA owns 9%, and other small financial investors such as Global Environmental Fund own 3%. Sinha and employees own the remaining 8%.
CPPIB first invested $144 million in ReNew in January 2018 and since then its total commitment has gone up to over $400 million. Its last round at Rs 415 a share valued ReNew at around $2.3 billion, said people in the know.
The current round is at a discount to that and may see CPPIB pay $500-520 million though the final quantum and other details are still being thrashed out.