Indian renewable energy company ReNew Power has completed its previously announced merger with RMG Acquisition Corporation II (RMG II), a special purpose acquisition company.
The merger was announced in February in a deal with an enterprise value of $8bn.
RMG II’s board of directors and shareholders recently approved the combination, which resulted in $610m in cash proceeds for ReNew Power.
These cash proceeds include funds from RMG II’s former trust account and from a private placement in public equity (PIPE).
The PIPE investors include BlackRock, BNP Paribas Energy Transition Fund, Chamath Palihapitiya, Sylebra Capital, TT International Asset Management, TT Environmental Solutions Fund and Zimmer Partners.
With this merger, ReNew Power has now become India’s largest publicly traded renewable energy company in terms of energy generation capacity.
RMG II director and CEO Robert Mancini said: “ReNew is now well-positioned to maintain and expand its leadership position as the largest renewable power generation company in India, and lead decarbonisation efforts in one of the world’s largest and most dynamic economies.”
As a result of this merger, RMG II has become a wholly owned subsidiary of the new combined entity, ReNew Energy Global.
From 24 August, ReNew’s ordinary shares and ReNew’s warrants will start trading on the NASDAQ.
ReNew intends to use the proceeds from this to pay off its debts, fund its operations and expedite its growth plan.
For this transaction, Goldman Sachs (India) Securities and Morgan Stanley India Company served as financial advisors to ReNew.
Latham and Watkins, Nishith Desai and Associates and Cyril Amarchand Mangladas acted as the company’s legal advisors.
Skadden, Arps, Slate, Meagher and Flom served as legal advisor to RMG II, while Khaitan and Co served as the company’s legal advisor on Indian legal aspects.
In May, ReNew Power announced plans to build a solar cell and module manufacturing facility in the Indian state of Gujarat.