Japanese investment company Sumitomo Corporation will acquire a 49 per cent stake in a special purpose vehicle of domestic RE player Hero Future Energies for an undisclosed amount.
The Special Purpose Vehicle (SPV) of Hero Future Energies (HFE) is developing a project of an approximately 500 MWp wind and solar power plant with a large-scale battery energy storage at Bidar, Karnataka, a statement said on Monday.
A strategic partnership has been signed with Sumitomo Corporation under which it will acquire a 49 per cent stake in its project SPV, HFE said.
The Hero Group company said it will retain the remaining 51 per cent stake in the SPV.
“As India enters the next phase of its energy transition, partnerships such as the one with Sumitomo will play a critical role in bringing together capital and execution excellence to accelerate all round adoption of clean energy,” said Rahul Munjal, Founder and Chairman, Hero Future Energies.
Jun Minase, General Manager, Overseas Energy Solution SBU of Sumitomo Corporation said, through this partnership, the company will strengthen its Renewable Energy (RE) business platform in India while pursuing new business opportunities that support the stable supply of RE.
Nomura served as the financial advisor to Hero Future Energies in connection with the transaction.
HFE did not disclose the transaction value.