Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) will acquire an additional 10% stake in Apraava Energy from CLP Group for a total consideration of ₹660 crore.
The transaction will raise CDPQ’s stake in the independent power producer to 50% and make it an equal equity partner with CLP in the company. Following this transaction, CDPQ will also have increased governance rights, equal to those of CLP, with respect to Apraava Energy, said a statement.
CDPQ first became a strategic shareholder in Apraava Energy in 2018 through acquiring a stake of 40%.
The statement said that since the investment by CDPQ, Apraava Energy has successfully undertaken a number of energy transition related investments. “Building on this, Apraava Energy will have a sharper and dedicated focus in the investment and development of clean energy and power transmission projects," it added.
Emmanuel Jaclot, Executive vice-president and head of infrastructure at CDPQ, said: “Ever since our investment in Apraava Energy nearly four years ago, CDPQ has strived, alongside CLP, to transform Apraava into a true sustainability leader equipped with a clear plan to transition to renewable energy. We are delighted to increase our stake in the company, helping drive this agenda forward while supporting India’s ambition of providing clean and sustainable energy to all."
Richard Lancaster, chief executive officer at CLP Holdings, said that both CLP and CDPQ are aligned in seeking investment opportunities for zero-carbon infrastructure projects to support India’s energy transition.
“We will continue to focus on building a sustainable power company that will invest only in low-carbon growth areas, including renewable generation, transmission, distribution, as well as other customer-focused energy businesses. As we move forward, all of our decisions and efforts will epitomise energy in action, thereby creating value for all our stakeholders,“ said Rajiv Mishra, managing director at Apraava Energy.
The completion of the transaction is subject to the fulfilment of various conditions precedent including regulatory approvals, the statement said.