ReNew promoters, Masdar offer to buy $800 mn shares to take it private | Stock Market News

New Delhi: A consortium of promoters of ReNew Energy Global, including Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority (ADIA) and founder Sumant Sinha, along with a new investor Masdar, have proposed to buy out the listed shares to take the company private.

In a non-binding proposal of 10 December, the consortium has offered to buy the shares at $7.07 apiece, according to a statement. That would cost the consortium about $800 million at current prices to purchase shares from the remaining investors. 

Current valuation

Nasdaq-listed ReNew Energy’s stock last closed at $6.34 per share at a market capitalization of $2.37 billion. 

CPPIB, ADIA and Sinha, together own 64% of the company. Masdar, the new investor, is a UAE government-backed renewable energy company.

The statement added that the board of directors of the company have formed a special committee led by Manoj Singh, the lead independent director, and comprising six independent non-executive directors, to consider the non-binding proposal.

The role of the committee is to explore and evaluate all strategic capitalization and financing opportunities available to the company, including the proposal received from the consortium, and act in the interests of all investors, it said.

To assist in these efforts, the special committee has retained independent financial advisor Rothschild & Co and independent legal counsel Linklaters LLP.

The company, however, said in its statement that no assurance can be given regarding the likelihood, terms or details of a potential transaction resulting from the proposal received from the consortium or any other potential transaction.

“Further decisions or disclosures by the Special Committee will be made as appropriate or required,” it said.

Shares of the company were listed on Nasdaq in August 2021 through a merger with a special purpose acquisition company (SPAC).