ABU DHABI: Tata Power has agreed to sell part of its renewable business to a consortium led by BlackRock Real Assets, which also includes Abu Dhabi-based Mubadala Investment Company.
Under the binding agreement, BlackRock Real Assets, together with Mubadala, will invest $525 million through mandatory convertible instruments for a 10.53% stake in the company, resulting in a base equity valuation of $4.46 billion, according to a statement released by Mubadala.
This newly created platform will include five units – utility-scale solar, wind and hybrid generation assets; manufacture of solar cells and modules; engineering, procurement and construction (EPC) contracts; rooftop solar infrastructure; and solar pumps and electric vehicle charging infrastructure.
“I am delighted to welcome BlackRock Real Assets and Mubadala to join us in taking the renewable energy sector to the next level of growth. This collaboration will help us pursue exciting opportunities that await us in the decades to come,” said Praveer Sinha, CEO and Managing Director of Tata Power Company Limited.
Khaled Abdulla Al Qubaisi, CEO, Real Estate & Infrastructure Investments at Mubadala, said: “As a responsible investor, Mubadala is focused on renewable energy in multiple markets, so we are delighted to invest in Tata Power Renewables to support the energy transition efforts in India in partnership with Blackrock Real Assets.
“Tata Power Renewables is at the forefront of India’s ambition to provide greater energy stability for its citizens. It is also positioning its economy for a low-carbon future. India’s success in transitioning its energy economy will be critical to the world’s ability to meet its climate goals,” said Anne Valentine Andrews, Global Head of Real Assets at BlackRock.
Tata Power Renewables is one of the largest renewable energy companies in India.
Its vertically integrated operations currently have approximately 4.9 GW of renewable energy assets.