KKR, Actis, NIIF-Temasek and Aditya Birla Submit Binding Bids for Shell's Sprng Energy
Shell Receives Binding Bids for Sprng Energy
Global energy major Shell has received binding bids from four suitors for its Indian renewable energy business, Sprng Energy, one of the biggest renewable energy assets on sale currently. The suitors include private equity firms KKR, Actis, a consortium of National Investment and Infrastructure Fund (NIIF) and Temasek, and the Aditya Birla Group.
According to sources, the bids were submitted in the last week of April, and the sale of Sprng Energy is expected to fetch an enterprise valuation of around $1.6 billion to $1.8 billion. Sprng Energy has an overall portfolio of 5 gigawatts (GW) of assets, with 2.3 GW currently operational.
The bid for Sprng Energy comes as Shell is reviewing strategic options for the company, a decision made in response to the sharp increase in global energy prices triggered by the Russia-Ukraine war. This marks the second time Shell is trying to sell the Sprng business, which it initially acquired from Actis in 2022 for $1.55 billion.
| Company | Assets | Operational Capacity | Under Construction/ Development Capacity | Expected Valuation |
|---|---|---|---|---|
| Sprng Energy | 5 GW | 2.3 GW | - | $1.6 billion - $1.8 billion |
| BluPine Energy | 3.9 GW | 1.49 GW | 2.45 GW | $1.5 billion - $1.8 billion |
| Global Infrastructure Partners | 1.1 GW | - | - | - |
| Vibrant Energy | 1,337 MW | - | - | Rs 5,000 crore |
| SHV Energy Solar Portfolio | 290 MW | - | - | - |
The renewable energy sector is seeing a strong pipeline of M&A deals, with multiple transactions taking place in recent months. In addition to the bid for Sprng Energy, Actis is also looking to sell its Indian renewable energy platform, BluPine Energy, which has a portfolio of 3.9 gigawatts (GW) of solar and wind assets. Blackrock-owned Global Infrastructure Partners is also looking to sell its 1.1 GW of renewable energy assets in India.
Other notable deals in the renewable energy sector include the acquisition of Macquarie's Vibrant Energy by Inox Clean Energy in December, and the sale of Dutch energy company SHV Energy's Indian solar portfolio to Inox Clean Energy in January.
Investor Takeaway
Investors should be aware of the potential sale of Sprng Energy and its expected valuation.
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