Caisse de dépôt et placement du Québec (CDPQ), a Canada-based institutional investor, has entered into an agreement to acquire 40% stake in CLP Group’s CLP India.
CLP GPEC (Mauritius), a subsidiary of CLP Group will own the majority 60% stake in CLP India, after the transaction is completed.
CLP and CDPQ state that they are aligned towards growth strategy for CLP India. With strategic backing and financial support, CLP India is expected to pursue a growth plan for a long-term sustainable business with a larger and diversified portfolio.
CLP India is expected to invest in low-carbon growth areas including renewable energy projects as well as non-generation business opportunities in transmission, distribution and other customer-focussed businesses.
CLP CEO Richard Lancaster said: “We are pleased to have a partner who shares both our vision for growth and commitment to tackling climate change. India has been, and will continue to be, a primary growth market for CLP.
‘With the expertise and resources this new partnership brings, CLP India will be even better placed to capitalise on opportunities to grow the business through low-carbon investment.”
Under the transaction, CLP GPEC will transfer 40% of its shareholding to CDPQ for a consideration of INR26.4bn ($364m). The transaction is subject to completion of various conditions, along with regulatory approvals.
CLP is a Stock Exchange of Hong Kong enlisted company and is considered to be one the largest investor-owned power businesses is Asia Pacific. Across the Asia Pacific region, it invests in generation assets using a wide range of fuels including coal, gas, nuclear and renewable sources.
In India, it is one of the biggest renewable energy producers and is also one of the largest foreign investors in electricity sector.
Canada-based CDPQ is a long-term institutional investor managing funds for public and parapublic pension and insurance plans. As of June this year, the company held C$308.3bn ($236.4bn) in net assets.