Petronas renewable energy arm leads race to climb green tower at Brookfield
Gentari Sdn Bhd, the renewable energy arm of Malaysian energy giant Petronas, is the frontrunner for a part of the India renewable portfolio of Brookfield Asset Management, said two people aware of the development. Gentari, which has conducted due diligence of the assets, has signed an exclusivity agreement for further negotiations with Brookfield, they said.
Government-run Oil and Natural Gas Corp (ONGC) is another contender that has completed due diligence, said people with knowledge of the matter. The 2 GW renewable portfolio of Brookfield in India that’s up for sale has an estimated enterprise value of $800 million-1 billion (Rs 6,600-8,300 crore). Other entities that had submitted initial bids but are no longer in the race include Sekura Energy, Sembcorp and UAE's Masdar Energy, they said.
Of the portfolio, 1 GW is operational and projects with a capacity of 1 GW are under construction, expected to be completed within 18 months, said the people cited.
Five years after entering the renewable energy sector in India, Canadian investor Brookfield Asset Management is looking to partially monetise its assets, having hired investment bank JP Morgan to run the sale process, ET was first to report in February. Brookfield has about 20 GW of wind and solar assets in operation or in the development pipeline across India.
The holdings that will be divested include capacities of 500 MW in Rajasthan, 50 MW in Gujarat, 300 MW in south India and 80 MW in Madhya Pradesh. A Brookfield spokesperson declined to comment.
