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On Wednesday, L&T said it would divest a 100 per cent stake in the 99 MW Singoli-Bhatwari Hydroelectric Project owned by its subsidiary L&T Uttaranchal Hydropower Limited (LTUHPL) to Renew Power Services Private Limited, a wholly-owned subsidiary of Renew Power Private Limited. The sale consideration is Rs 985 crore.
“This development is a significant step in our effort to unlock the value of some of our power development assets to streamline and allocate capital to create long-term value for our shareholders,” said D K Sen, whole-time director, Larsen & Toubro.
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The transaction is subject to the completion of customary closing conditions, and the closing is expected to occur before 30 September 2021.
“Given that the asset is already operational, the acquisition is not only value accretive for us but also presents a lower level of risk,” said Sumant Sinha, founder, chairman, and CEO of Renew Power, adding that this acquisition strengthens their ability to provide firm and round the clock power to the grid and compliments solar and wind assets, filling up an essential position in Renew’s portfolio. “We will be looking to acquire more hydro assets in the future as they are the best clean balancing sources for intermittent renewable energy,” added Sinha.
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