Yinson Renewables, a wholly-owned subsidiary of floating, production, storage and offloading (FPSO) service provider Yinson Holdings, has signed an agreement to increase its stake in India’s Rising Sun Energy (RSE), to 95%.

Under the terms of the agreement, Yinson will pay INR1.1bn ($14.6m) to acquire the additional stake of 57.5% in RSE, which operates two solar plants in the Bhadla Solar Park, Rajasthan, India.

Yinson entered into the renewables market by acquiring 37.5% stake in RSE in March 2020.

Yinson to hold controlling stake in RES

Upon completion of the deal, Yinson will hold a controlling stake in RES and bring its total investment to INR2.3bn (30.6m) in RSE.

Yinson Group CEO Lim Chern Yuan said: “I am pleased that we have taken this important step towards strengthening Yinson’s position in the renewable energy segment.

“We believe that this investment will be earnings accretive in the long term, resulting in favourable returns to our shareholders. As always, this investment follows our prudent investment criteria to add value, reflecting carefully managed risks.”

RSE’s two operational solar plants, which have a combined generation capacity of 140MW, were commissioned in 2017.

The RSE’s projects are supported by 25-year Power Purchase Agreements (PPAs), valid until 2042, with NTPC, the large-scale power utility owned by the Government of India.

Yinson said that the transaction complements the strategies of renewables division, and would support its vision of becoming a global energy solutions provider.

Rising Sun Energy founder and CEO Arunav Sharma said: “The transaction is reflective of the long-term nature of Yinson’s ownership in RSE. Most importantly, it serves to establish a clear foundation for strategic growth and operational alignment to become a leading renewable energy developer and operator in India.”