India-based Tata Power Renewable Energy (TPREL) has signed a share purchase agreement (SPA) to acquire New Delhi-based Welspun Renewables Energy's (WREPL) renewable portfolio for $1.4bn.
WREPL has about 1,140MW of renewable power projects, with 990MW of solar power and the remaining 150MW of wind. Currently, about 1,000MW of the total capacity is operational, while the rest is under advanced stages of development.
Tata Power's chief executive officer and managing director Anil Sardana said: "The company is pursuing growth in renewable energy space to create value for its shareholders through various organic and inorganic growth opportunities.
"This acquisition will enable the company to deliver significant value for all stakeholders as most of the assets are revenue-generating and operating assets. Tata Power can further enhance value of these assets with its operational experience and financial optimisation.
"The acquisition is also a significant step towards attaining the company's objective of having non-fossil fuel based capacity up to 30%-40% of its total generating capacity."