AM Green to buy 17.5% stake in Greenko from Orix for $1.28 billion
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New Delhi: Japanese financial group Orix Corporation has agreed to sell its 17.5% equity stake in Greenko Energy Holdings for $1.28 billion to AM Green (AMG), an entity promoted by Greenko co-founders Anil Chalamalasetty and Mahesh Kolli.Simultaneously, ORIX has also agreed to invest about $731 million in a convertible note issued by AM Green's Luxembourg-based parent, giving them a 10% equity stake in the operating company. ORIX expects to complete both transactions by the end of July, it said in a statement Monday.The two-pronged transaction, once concluded, will see Chalamalasetty and Kolli cumulatively own 28% of Greenko held via their personal capacity as well as AM Green, valuing the renewable utility at $7.5 billion. Singapore's GIC (58%) and Abu Dhabi Investment Authority (14%) are other key shareholders of Greenko. At March-end, Greenko operated renewable energy power generation facilities with a total installed capacity of 7.3 GW, including solar, wind, and hydroelectric power generation. In addition, Greenko has also completed a 1.7 GW pumped storage project in Andhra Pradesh.AM Green also has plans to produce 5 million tonnes per annum (MTPA) of green ammonia , with the first 1 MTPA project under construction at Kakinada in Andhra Pradesh, expected to be commissioned in 2026. The project, which includes a green hydrogen unit and ammonia conversion plant at a repurposed urea facility acquired earlier this year from Nagarjuna Group, will cost about ₹12,500 crore.AMG has also signed green ammonia supply term sheets with Uniper SE, an energy company, and Yara Clean Ammonia, a trader and distributor of ammonia. AMG also has a joint venture with John Cockerill to manufacture electrolyzers that are used for producing green hydrogen.For ORIX, the renewable energy business is one of its key strategic growth areas. It is developing its power generation business in Japan and outside. ORIX said the sale of 17.5% of its 20% shareholding in Greenko is part of its "capital recycling strategy.""ORIX aims to invest in the next generation of the energy sector (including green molecule) by using part of these funds, an area expected to grow rapidly," the Japanese financial services company said. "This transaction is a key milestone in building one of the world's fully integrated and scalable green energy platforms," said Anil Chalamalasetty, Founder and CEO of AM Green. ORIX's stake acquisition strengthens AM Green's upstream integration through Greenko, AMG said in a statement.Both these agreements were previously announced in January but terminated in April after the underlying conditions were not met. "However, after further consideration among related parties, we have decided to re-enter into this agreement," ORIX said.
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