Investors propose taking ReNew Energy Global private in deal

Major investors in ReNew Energy Global have proposed taking the clean power generator private in a deal valued at $2.82 billion. 

The consortium, which includes the Canada Pension Plan Investment Board and UAE-based Masdar, holds 64% of the company’s voting rights and has offered to buy ReNew’s shares at $7.07 each.

The offer represents an 11.5% premium on ReNew’s closing price of $6.34 on December 10, 2024. Following the announcement, ReNew’s stock closed at $7.46, exceeding the offer price by 5.5%.

ReNew, which operates 10.3 GW of solar, wind, hydro, and hybrid projects across India, is poised to become the country’s second-largest renewable energy firm. The proposed privatisation aims to provide shareholders with immediate liquidity not available in the public markets.

CreditSights, part of Fitch Group, suggested that the delisting could lower compliance costs and enhance access to funding channels in the UAE and Middle East. The move could also lead to the exit of Japan’s JERA, which held 11.7% of Class A shares as of July 2024.