Petronas, two others eye green energy co Fourth Partner
Malaysian energy major Petronas, Indonesia's renewables firm Sun Energy and global commodities company Vitol are in talks to acquire TPG Capital's Rise Fund-backed Fourth Partner Energy, a renewables company that supplies green energy to commercial and industrial establishments, said two sources aware of the development. The majority stake sale is likely to value the company's equity base at around $450-$500 million, the sources said.
TPG, which owns close to 50% stake in the business, is looking to completely exit the company through this transaction, the sources added.
The incoming investor will also bring in some fresh capital to fund the growth plans of the company, which include growing its asset base to up to 3.5 gigawatts (GW) by 2025.
«Petronas, Sun Energy and Vitol have submitted non-binding offers and are doing diligence on the company's assets. A few other investors had also looked at the asset earlier, but these three are the ones left in the race now,» said one of the sources cited above.
Petronas owns Amplus Solar in India that has an operating portfolio of 1.5 GW of renewable assets.
Vitol owns around 1.2 GW of renewable assets, while Indonesia-based Sun Energy has installed over 280 MW of renewable power capacity for corporate clients.
Norfund, a Norway government sponsored investment fund, which invested $100 million in the company in 2021, will continue to hold its stake, the source added.
In August, Norfund invested ₹350 crore into the company. TPG first entered the company in 2018 investing $70 million.
Fourth Partner Energy had an operating portfolio of 685 megawatts (MW) as of March 2023 growing from 248 MW as of September 2021, according to a report by credit rating agency Icra.
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