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Clean energy producer CLP India Pvt. Ltd. is set to be acquired by the Canadian institutional fund, CDPQ. The acquisition will be a non-controlling stake, expanding CDPQ (Caisse de dépôt et placement du Québec) investments into India’s power sector.
The companies said in a joint statement that the CLP Group, the parent organization of CLP India will transfer a 40 per cent shareholding in its wholly-owned subsidiary, for Rs. 2,640 crore in cash. The group will maintain the remaining 60 per cent stake under its control.
The company said in the statement, “CLP India will seek to expand investments in low-carbon growth areas including renewable energy investments as well as non-generation business opportunities in transmission, distribution and other customer-focused businesses.”
CLP India which is a subsidiary of CLP Holdings Ltd. is listed on the Hong Kong Stock Exchange and is one of the largest foreign investors in the Indian power sector with a total committed investment of over Rs. 14,500 crores.
The transaction is supposed to expand the CDPQ’s investment in India’s power sector, it is also meant to help CLP expand its transmission and distribution services. The transaction is now subject to approval by shareholders and regulatory bodies.
