Renewable energy firm Greenko Group has agreed to sell its Indian assets and trading activities to Singapore sovereign wealth fund GIC for £162.8m.
The parties have signed non-binding heads of terms, which will see Greenko divest its shares in Greenko Mauritius.
The transaction, which includes the rights to several clean energy projects in India, would releive Greenko from all related financial liabilities.
Greenko and GIC are currently in an advanced stage of negotiations. The disposal will be subject to a legally binding agreement.
Greenko aims to distribute the proceeds from the sale, net of certain Indian taxation, transaction fees and running costs, to its own shareholders.
Currently, Greenko has 402MW of operational wind capacity and 402MW in an advanced stage of construction.
The company also operates 235.3MW of hydro assets and six biomass plants totaling 41.5MW.
Greenko has also released a trading update for the first half of this year, reporting a 49% year-on-year increase in power generation to 904GWh.
Installed operational capacity increased to 838MW, when compared to 596MW for the same period last year.
The company said the lack of an attractive long-term power purchase agreement for its 70MW Budhil hydro project has forced the facility to sell its output to the short term merchant market at reduced prices.
The 96 MW Dikchu hydro project is at an advanced stage of completion and is anticipated to be commissioned in the fourth quarter of this year.
Greenko said it is on track to achieve its goal of 1GW of installed operational capacity this year, with all projects currently under construction being fully financed.
Image: Greenko currently has 402MW of operational wind capacity and 402MW in an advanced stage of construction. Photo: courtesy of pakorn/FreeDigitalPhotos.net.