Masdar and shareholders to snap up ReNew Energy’s publicly traded shares

Renew Energy shareholders offer buyout to take company private: A consortium of shareholders of Indian clean energy firm Renew Energy Global — including Masdar, Platinum Hawk (Adia), the Canada Pension Plan Investment Board, and founder Sumant Sinha — have submitted a bid to take the company private, according to a statement. The shareholders collectively own 64% of the Nasdaq-listed company.

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The offer: The group is offering to purchase Renew Energy at USD 7.07 per share, representing an 11.5% premium to the stock's last close. The offer values the company at USD 2.82 bn, and would see Japan’s Jera, which owned 11.7% of Class A shares in the company, exit the firm, Reuters reports, though it’s not clear if it still has the same size stake in the firm.

The company’s stock hasn’t had a good year, falling 18% since the start of the year, and 36% since it went public in February 2021.

The rationale: The proposal comes on the back of “Masdar's positive assessment of the strength of India’s renewable sector” and would provide “capital investment to support the country’s energy transition,” Reuters quotes Masdar as saying in a statement.

What’s next? ReNew Energy, which has 10.4 GW of operational wind and solar capacity, plans to refocus its investments on India, where it aims to double its renewable capacity by the end of the decade, Sinha told Bloomberg. An independent special committee will review the bid, with Rothschild & Co acting as financial advisor and Linklaters as legal counsel.