Omers in talks to invest $700m in Greenko

MUMBAI: Omers Infrastructure Management, the infrastructure investment manager of the Ontario Municipal Employees Retirement System (Omers), is in discussions to invest $700-750 million for a minority stake in Greenko Energy Holdings, India’s second-most valuable renewable energy company, said three people aware of the development.Negotiations have gathered momentum months after the Hyderabad-based clean energy company raised $980 million from Japan’s Orix Corp. for a stake of about 20%, the single largest foreign direct investment (FDI) in India’s renewable energy sector. Omers is one of Canada's largest pension funds.The exact deal contours, including quantum of stake dilution, are yet to be finalised but the proposed investment from Omers is expected to be a primary infusion into the company for future growth through a combination of shares and warrants, said the people cited above. The valuation too has not been finalised, though this is likely to be the same as the Orix round at $5.75 billion, excluding debt. The company had about $3.7 billion in net debt at the end of FY20.There is no certainty that a deal will be reached, said one of the persons. 79672935Could be Omers’ biggest India betAn Omers spokesperson declined to comment. Greenko denied that a deal was imminent.Along with Warren Buffet’s Berkshire Hathaway Energy and state-backed Chinese investment fund CNIC Corp, Omers was among those that engaged with Greenko’s founders even before the Orix deal. CNIC had even made a non-binding bid but those negotiations hit a dead end because of geopolitical tensions. Greenko has so far raised nearly $3.5 billion from marquee global investors including Abu Dhabi Investment Corporation. GIC will remain the largest shareholder. Anil Kumar Chalamalasetty and Mahesh Kolli have a 13-14% shareholding on a fully dilutive basis.

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