NewsCorporate ActionsReNew Energy Global Agrees to $8.15 Per Share Buyout Offer from ConsortiumReNew Energy Global Agrees to $8.15 Per Share Buyout Offer from Consortium
ReNew Energy Global Plc has agreed in principle to a cash buyout offer of $8.15 per share from a consortium of investors including Masdar, CPP Investments, ADIA's subsidiary Platinum Hawk, and ReNew chairman Sumant Sinha. This offer represents an increase from the initial $7.07 per share offered in December. The special committee, led by independent director Manoj Singh, has indicated it would unanimously recommend shareholders vote in favor if a final binding offer is made. JERA Nex, the largest shareholder outside the consortium, is inclined to support the deal. ReNew's shares rose 3% to $7.76 in early trading following the news. The deal aims to acquire all outstanding shares and delist ReNew from Nasdaq, subject to finalizing terms, securing approvals, and completing due diligence.
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ReNew Energy Global Plc, a prominent player in the renewable energy sector, has reached an agreement in principle to a cash buyout offer of $8.15 per share. The offer comes from a consortium comprising several major investors, signaling a significant development in the company's trajectory.
Key Details of the Buyout Offer
| Aspect | Details |
|---|---|
| Offer Price | $8.15 per share (cash) |
| Initial Offer (December) | $7.07 per share |
| Current Share Price | $7.76 (3% rise in early trading) |
| Consortium Members | Masdar, CPP Investments, ADIA's subsidiary Platinum Hawk, ReNew chairman Sumant Sinha |
Offer Specifics and Implications
The consortium aims to acquire all outstanding shares they do not already own, with the intention of delisting ReNew Energy Global from Nasdaq. This move represents a significant shift for the company, which has been publicly traded since 2021.
Special Committee Recommendation
A special committee, led by independent director Manoj Singh and advised by Rothschild & Co and Linklaters, has indicated it would unanimously recommend shareholders vote in favor if a final binding offer is made on these terms. This endorsement from the committee could play a crucial role in the shareholders' decision-making process.
Shareholder Stance
JERA Nex, the largest shareholder outside the consortium, is currently inclined to vote in favor of the deal, contingent on the special committee's unanimous recommendation. This support from a major shareholder could potentially influence other investors' decisions.
Market Response and Share Performance
ReNew's shares responded positively to the news, rising 3% in early trading to $7.76. However, it's worth noting that the stock remains about 15% down since its listing in 2021, providing context to the current offer price.
Path Forward
The completion of this offer is subject to several conditions:
- Finalizing terms
- Securing necessary approvals
- Completing due diligence
These steps will be crucial in determining whether the buyout proceeds as proposed.
This development represents a significant moment for ReNew Energy Global and its shareholders, potentially marking a new chapter for the company in the rapidly evolving renewable energy sector. Stakeholders will be closely watching the next steps as the deal progresses towards potential completion.
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