Sembcorp and Hexa Climate Solutions Compete for Enel's India Renewable Assets in Multibillion-Dollar Transaction
Sembcorp Industries and Hexa Climate Solutions in Talks to Acquire Enel Group's Indian Renewable Business
Deal Overview
Sembcorp Industries Ltd, a Singapore-based energy player, and Hexa Climate Solutions, backed by I Squared Capital, are in negotiations to acquire the entire India renewable business of Italy's Enel Group. The proposed deal has an estimated $100 million equity value and $300 million enterprise value.
Background
Sembcorp is present in India through its subsidiaries, including Sembcorp India Private Limited and Sembcorp Green Infra Ltd (SGIL). Hexa Climate Solutions, on the other hand, is a renewable energy company backed by I Squared Capital. The acquisition would further consolidate Sembcorp's and Hexa's presence in the Indian renewable energy market.
Deal Structure
The deal is expected to be structured as an asset purchase, with the acquirer(s) taking over Enel Group's India renewable business. The transaction is still in its early stages, and the outcome is yet to be determined.
Investor Takeaway
Investors should monitor the outcome of this multibillion-dollar transaction for potential implications on the renewable energy sector.
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