Canada Pension Plan buys 16.33% stake in India's ReNew Power
The Canada Pension Plan (CPP) Investment Board plans to purchase a stake as high as 16.33% stake in ReNew Power Ventures, an independent Indian power producer. ReNew is currently majority controlled by Goldman Sachs. COP will gain its stake in two transactions: an initial $200m of preference shares to be converted into equity after an IPO, and a 6.33% stake from the Asian Development Bank.
The Canada Pension Plan (CPP) Investment Board will buy a stake of up to 16.33% in Indian independent power producer ReNew Power Ventures Pvt Ltd, which is majority owned by Goldman Sachs Group Inc (NYSE:GS).

In a filing with the Competition Commission of India, CPPIB said it plans to acquire the stake in two separate transactions. Firstly, the Canadian investment manager is investing about USD 200 million (EUR 168.6m) in compulsorily preference shares that will be converted into equity once ReNew launches an initial public offering (IPO). The size of the interest in this part of the deal will depend on the valuation of the IPO and is not expected to exceed 10% of ReNew’s equity share capital.

As part of a second transaction, CPPIB will buy 6.33% of the Indian firm’s stock from the Asian Development Bank.

According to a report by the Economic Times, CPPIB’s investment in ReNew will represent a 14%-15% stake that will make it the third largest shareholder at the company. The newspaper cited unnamed industry sources as saying that the acquisition price is USD 350 million, valuing ReNew at USD 2.37 billion.

Earlier this year, Japanese power company JERA Co Inc, which is a joint venture between Tokyo Electric Power Co (TYO:9501) and Chubu Electric Power Co (TYO:9502), acquired a 10% stake in ReNew Power for USD 200 million in a deal that valued the Indian firm at USD 2 billion.

At present, ReNew Power has more than 2 GW of commissioned wind and solar capacity and an additional 1 GW of assets under construction, it says on its website.

(USD 1.0 = EUR 0.843)

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