Malaysia’s Gentari plans minority stake sale in C&I assets to raise around $400 million
NEW DELHI:New Delhi: Gentari Sdn Bhd, a unit of Malaysia’s state-run oil and gas company Petroliam Nasional Bhd (Petronas) that has been actively scouting for green energy assets in India, is now planning a minority fund raise in its proposed commercial and industrial (C&I) projects in an equity deal valued at around $400 million, two people aware of the development said.This will involve a stake sale of up to 49% in its 3.5 gigawatt (GW) assets that will supply electricity to a unit of AM Green, set up by Mahesh Kolli and Anil Kumar Chalamalasetty, founders of Greenko Group. The unit will produce 5 million tonnes per annum (mtpa) of green ammonia that is equivalent to about 1 mtpa of green hydrogen.
The power purchase agreement is for supplying 5 GW to AM Green Ammonia Holdings, in which Gentari is also investing $1.5 billion for 30% stake.“The total PPA is for supplying 5 GW, for which construction has started for 3 GW. Gentari is looking for partners for the remaining capacity," said one of the two people cited above, requesting anonymity.India’s C&I segment has been attracting strong investor interest given the supportive regulatory landscape, with rules allowing large power users to source energy from the open market rather than the costlier grid.
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