Masdar rumoured to be buying stake in Hero Future Energies

Abu Dhabi government-owned company Masdar is rumoured to be in talks to buy a 20% stake in Hero Future Energies (HFE) for $150m.

According to a report in the Economic Times in India, the two groups have been in exclusive talks since January 2019 and will sign an agreement this week. BNP Paribas advised Masdar on the deal and JP Morgan advised HFE. International Finance Corporation (IFC) spent $125m on a 27% stake in HFE in 2017.

Masdar and HFE have been approached for comment on this story.

Masdar

A state-run company based in Abu Dhabi, Masdar has a global reach. It is no stranger to investing in other companies or establishing joint ventures (JV), as in January 2019 it created a JV with Taaleri to increase its presence in Central and Eastern Europe.

By the end of 2018, the company had a total renewable energy capacity of 4GW with projects in 25 countries. Masdar has invested $12bn in renewable energy projects around the world, producing 10,680 gigawatt-hours (GWh) of power a year.

One of its most notable projects is providing 800MW to the Mohammed bin Rashid Al Maktoum Solar Park in the UAE, which will be the largest solar park in the world with a 5GW capacity when it is completed.

Hero Future Energies

HFE was founded in 2012 and is a subsidiary of the Hero Group, a motorcycle production company.  It has a portfolio of 1.2GW in wind and solar power, with a further 800MW under construction or in the pipeline.

The company is exclusively based in India, where it has a presence in 10 states.