Shell to Buy Renewable Firm Sprng Energy for $1.5 Billion

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Shell to Buy Renewable Firm Sprng Energy for $1.5 Billion
30 Apr 2022
min read

News Synopsis

British energy giant Shell has announced that its subsidiary Shell Overseas Investments has signed an agreement with acquisition company Actis to acquire India's renewable energy platform Sprng Energy for $1.55 billion.

Sprng Energy, a funded investment in Actis Energy 4, supplies solar and wind power to Indian distribution companies. Its portfolio has 2.9 GW peak solar and wind assets, and the pipeline has 7.5 GWp renewable energy projects.

The acquisition will help Shell to triple its renewable energy capacity in operation, which currently stands at 1 GW, as it seeks to be a net-zero emissions company by 2050. 

As part of the transaction, Shell will acquire Solenergi Power Private Ltd, a direct shareholder of Sprng Energy, founded in 2017. It has a seed capital of 330 MW-peak. Actis states that it was able to expand the platform in five years thanks to hands-on operational experience.

Bank of America advised Actis on the deal, and Standard Chartered was Shell's investment banker. The transaction still requires formal approval and will be completed within this year.
 

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