Canadian investment company Brookfield Asset Management has reportedly agreed to acquire the solar power business of Indian power company Emami Group.
According to reports, Emami Power intends to lower the company’s debts with the divestment of its solar business. Financial details of the deal have not been divulged by the companies.
Moneycontrol reported Emami Group director Harsha Agarwal as saying: “As part of our divestment plan of non-core business assets, we are happy that we could conclude the deal with Brookfield Asset Management to sell our solar power business – Emami Power.”
The group confirmed the deal, but said the solar business is related to its promoter group.
According to VCCircle, Emami Power has nearly 50MW capacity with facilities located in several Indian states including Karnataka, Gujarat, Tamil Nadu and Uttarakhand.
A source familiar with the deal said: “The Emami group is looking to speedily pare its debt burden at the group level and become debt free. This transaction is a part of their ongoing non-core asset monetisation exercise.”
For this transaction, Yes Securities is said to be the financial advisor to the Emami Group and Khaitan & Co as the legal advisor.
With this deal, the Canadian company is reportedly planning to increase its presence in the Indian renewable energy sector.