Latest news with #AMGreen
Time of India
2 days ago
- Business
- Time of India
AM Green to buy 17.5% stake in Greenko from Orix for $1.28 billion
Orix Corporation will sell its 17.5% stake in Greenko Energy to AM Green for $1.28 billion, while investing $731 million in AM Green's convertible note for a 10% stake. This two-pronged transaction will increase Chalamalasetty and Kolli's ownership in Greenko to 28%, valuing the renewable utility at $7.5 billion. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads 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 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 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 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 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 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 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.
Japan Times
3 days ago
- Business
- Japan Times
Orix to sell $1.3 billion stake in Greenko to founders
Orix will sell most of its stake in Greenko Energy Holdings back to the Indian clean energy producer's founders for $1.28 billion. Tokyo-based Orix agreed to transfer a 17.5% holding in Greenko, out of its total ownership of 20%, to AM Green Power, which was established by the founders of Greenko, according to a statement on Monday. Orix will also invest about $731 million in a convertible note issued by parent company AM Green (Luxembourg) Sarl. Orix shares gained as much as 3.6% in Tokyo on Monday, their biggest intraday gain since April 10. AM Green aims to produce 5 million tons of green ammonia annually, and has the first 1 million tons-a-year project under construction in the coastal town of Kakinada in the state of Andhra Pradesh, the company said in a statement. The complex will also house a 2-gigawatt electrolyzer manufacturing factory as well as units to produce green chemicals, including sustainable aviation fuel. With Monday's deal, AM Green and its founders will own about 25% of Greenko, which is on track to build 10 gigawatts of renewable capacity and 100 gigawatt hours of daily storage capacity by 2030, according to the statement. Orix originally agreed to sell its entire stake in Greenko in January, but the pact was terminated by the Japanese company in April. The buyers had failed to agree with funding partners over financing of the transaction, Orix said at the time.
Time of India
3 days ago
- Business
- Time of India
Greenko founders buy Orix Corp's 20% in Greenko Energy for $1.3 bn
AM Green BV will buy Japanese financial service firm Orix Corp 's 17.5 per cent stake in clean energy producer Greenko Energy Holdings for USD 1.28 billion, the firms said on Monday. AM Green is owned by the founders of Greenko, Anil Chalamalasetty and Mahesh Kolli. Post this transaction, AMG will own around 25 per cent of Greenko, whose largest owner is Singapore's sovereign wealth fund GIC Pte with a 58 per cent stake. Orix will transfer 17.5 per cent holding in Greenko, out of its total ownership of 20 per cent, to AM Green Power BV (a subsidiary of AM Green BV). The Tokyo-based firm will also invest about USD 731 million in a convertible note issued by parent company AM Green (Luxembourg) Sarl (AMG Lux). Greenko owns major renewable energy companies in India and operates renewable energy power generation facilities with a total installed capacity of 10 gigawatt, including solar, wind, and hydroelectric power generation. In addition, it is advancing the development of large-scale pumped storage power generation. Live Events "Orix has supported Greenko's business growth since it invested in March 2021. Orix decided to sell 17.5 per cent of the 20 per cent share holdings in Greenko and invest in AMG Lux as part of its capital recycling strategy," the Japanese firm said in a statement. This investment will provide Orix long-term exposure to green hydrogen, ammonia, SAF and other next-gen molecules, aligning with its capital recycling strategy, AM Green said in a separate statement. While AM Green (AMG) did not give the value of the transaction, Orix said the transfer price is "USD 1.282 billion". "This transaction is a key milestone in building one of the world's fully integrated and scalable green energy platforms," Chalamalasetty, founder and CEO of AM Green, said. In January 2025, Orix announced that it had entered into a share transfer agreement with Greenko and a new investment in AMG Lux, but because the conditions precedent had not been satisfied, the agreement was terminated in April 2025. "However, after further consideration among related parties, we have decided to reenter into this agreement," it said. The transaction is subject to regulatory approvals and is likely to be concluded by the end of July. AMG has plans to produce 5 million tonnes per annum (MTPA) of green ammonia , with the first 1 MTPA project located in Kakinada in Andhra Pradesh, which is under construction with targeted commissioning during the second half of 2026. It has also signed binding term sheets with the likes of Uniper SE, an energy company, and Yara Clean Ammonia, a trader and distributor of ammonia, to supply green ammonia to Europe. In the future, AMG aims to expand its business to include the production of 1 MTPA of green hydrogen, synthetic fuels such as methanol, as well as the production of SAF ( Sustainable Aviation Fuel ) using biomass-derived raw materials, and to become a platform company that builds a value chain for next generation energy. AMG has also signed globally the largest power purchase agreements for supply of round-the-clock carbon-free energy for its first 2 MTPA green ammonia projects and has access to electrolysers through its manufacturing JV with John Cockerill. Its Kakinada industrial complex, currently under construction, will be the world's first and largest integrated green industrial zone. It will house 2 MTPA of green ammonia production, 2 GW electrolyser gigafactory and facilities for SAF and green chemical production. Greenko's flagship 1.7 GW pumped storage project in Andhra Pradesh has already been commissioned, with its next 2 pumped storage projects in Madhya Pradesh and Karnataka (2.5 GWs) are expected to be commissioned in 2026 and 2027, respectively. Orix said its gains from the transaction are subject to exchange rate fluctuations. "If the sale price is estimated using the exchange rate as of June 27, 2025, (USD 1 equal to 144.58 Japanese Yen), Orix expects to record a gain on the sale of approximately 93.4 billion Yen (including the valuation gain on the 2.5 per cent stake which we will continue to hold) in the consolidated financial statements in the second quarter for the fiscal year ending March 31, 2026," it said.
Mint
3 days ago
- Business
- Mint
Orix announces plan to sell stake in Greenko to promoter; invest $750 mn in AM Green
New Delhi: Japan's financial services firm Orix Corp. on Monday said it will reenter a share transfer agreement to sell its 17.5% stake in Greenko Energy Holdings to AM Green Power B.V., in what will be among the largest transactions in India's green energy space. Orix said in a statement that the decisions taken on Sunday also include reentering the agreement to invest in the convertible note issued by AM Green B.V, owned by founders of Greenko Group Anil Chalamalasetty and Mahesh Kolli. The deal is part of Orix's capital recycling strategy, with the transaction valuing Greenko Energy at $7.5 billion. Mint reported about the $1.4 billion deal on Sunday and that the deal will be announced on Monday. Under the terms of the deal, Orix gets $650 million in cash, plus $750 million worth of stock, amounting to 10% in AM Green through convertible notes. Chalamalasetty and Kolli will own the remaining 90% stake in AM Green. A private credit debt of $650 million was raised for the deal. 'If the sale price is estimated using the exchange rate as of June 27, 2025, ($1 = ¥144.58), Orix expects to record a gain on the sale of approximately ¥93.4 billion ($647.58 million) (including the valuation gain on the 2.5% stake which we will continue to hold) in the consolidated financial statements in the second quarter for the fiscal year ending March 31, 2026,' the statement said. 'AM Green B.V. has a call option on the remaining 2.5% stake that ORIX Corp. holds in Greenko Energy Holdings for 18 months. The plan is to acquire that portion as well, valued at around $150 million,' said a person aware of the development, requesting anonymity. AM Green Group president and Greenko Group president and joint managing director Mahesh Kolli declined to comment on the remaining 2.5% stake sale. Once the transaction is concluded, Chalamalasetty and Kolli will hold 28% stake in Hyderabad-based Greenko Energy, through their personal stakes as well as the stake held by AM Green, while sovereign wealth funds GIC Holdings Pte. Ltd, and Abu Dhabi Investment Authority (ADIA) will hold 58% and 14% respectively. Greenko has a 12 gigawatt (GW) operational portfolio of wind, solar, hydro, and pumped storage projects; with another 20 GW under construction. It is also eyeing new areas of business, including nuclear power, and participated in Nuclear Power Corp. of India Ltd's (NPCIL) process called for setting up small modular reactors for captive consumption. Greenko is also jointly developing India's largest electrolyzer plant of 2 GW annual production capacity with John Cockerill in Kakinada. 'ORIX has supported Greenko's business growth since it invested in March 2021. ORIX decided to sell 17.5% of the 20% share holdings in Greenko and invest in AMG Lux as part of its capital recycling strategy. ORIX aims to invest in the next generation of the energy sector (including green molecules) by using part of these funds, an area expected to grow rapidly as the world works towards achieving decarbonization,' the statement said. The deal has been in the works for some time, and Orix terminated the pact on 25 April for not meeting the conditions precedent. 'ORIX had announced in January 2025 that it had entered into a share transfer agreement of Greenko and a new investment in AMG Lux, but because the conditions precedent had not been satisfied, the agreement had been terminated in April 2025 . However, after further consideration among related parties, we have decided to reenter into this agreement,' the statement said. 'Regulatory approvals under the Indian Competition Act have already been obtained, and ORIX plans to complete the partial transfer of Greenko shares and underwriting of the convertible notes by the end of July 2025,' the statement added. AM Green, on its part, has been putting the downstream piece together and is setting up production facilities for green molecules; including green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels, and various downstream high-value chemicals, for decarbonization in hard-to-abate industries. It plans to produce 5 million tonnes per annum (mtpa) of green ammonia, with the first 1 mtpa project in Kakinada 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, will cost about ₹ 12,500 crore. AM Green has already signed offtake agreements with major buyers including Uniper, Yara, and Keppel.
Mint
3 days ago
- Business
- Mint
Exclusive: Greenko founders buy Orix Corp.' 20% in Greenko Energy for $1.4 billion, announcement on Monday
AM Green B.V., owned by Greenko Group founders Anil Chalamalasetty and Mahesh Kolli, has purchased Japanese financial services firm Orix Corp.'s 20% stake in Greenko Energy Holdings in a $1.4 billion equity deal, two people aware of the development said. The transaction, one of the largest deals in India's green energy sector that values Greenko Energy at $7.5 billion, will be announced on Monday, the people cited above said on the condition of anonymity. Under the terms of the deal, Orix gets $650 million in cash, plus $750 million worth of stock amounting to 10% in AM Green through convertible notes. Chalamalasetty and Kolli will own the remaining 90% stake in AM Green. The deal is part of Orix's capital recycling strategy. Once the transaction is concluded, Chalamalasetty and Kolli will hold 28% stake in Hyderabad-based Greenko Energy, through their personal stakes as well as the stake held by AM Green, while sovereign wealth funds GIC Holdings Pte. Ltd, and Abu Dhabi Investment Authority (ADIA) will hold 58% and 14% respectively. The deal has been in the works for some time, and saw Orix terminating the deal on 25 April for not meeting conditions precedent. AM Green Group president and Greenko Group president and joint managing director Mahesh Kolli declined to comment. 'A private credit debt of $650 million was raised for the deal. The initial plan was to complete the deal by end March; but a lot of conditions precedent were not met, that had led to the announcement of the termination of the deal," said one of the two people cited above. Queries emailed to the spokespersons of Orix, Greenko, GIC, ADIA and AM Green on Friday evening remained unanswered. Analysts say having GIC as a promoter has helped Greenko. 'Greenko's rating benefits from financial support and strategic oversight from 58% owner Singapore sovereign wealth fund GIC, which holds four of 13 board seats. GIC approves investment plans, oversees operations and manages risks," Fitch Ratings wrote in a 16 March report. Mint earlier reported about GIC and Malaysia's Gentari Sdn Bhd investing $1.75 billion in AM Green Ammonia Holdings, a deal that ranked among the world's largest in energy transition. While Gentari will invest $1.5 billion for 30% in AM Green Ammonia Holdings, the founders will hold the balance 70% along with GIC, which will invest $250 million. 'This is an integrated play wherein Greenko takes care of upstream renewable power generation, and midstream storage through pump storage projects; wherein AM Green works on the downstream part involving molecule and materials manufacturing. While for the promoters, the first 15 years was about building a green energy business, the next 10 years is about the green energy transition business," said the first person. Greenko has a 12 giga watt (GW) operational portfolio of wind, solar, hydro, and pumped storage projects; with another 20 GW under construction. It is also eyeing new areas of business including nuclear power, and participated in Nuclear Power Corp. of India Ltd's (NPCIL) process called for setting up small modular reactors for captive consumption. Greenko is also jointly developing India's largest electrolyzer plant of 2 GW annual production capacity with John Cockerill in Kakinada. AM Green, on its part, has been putting the downstream piece together and is setting up production facilities for green molecules; including green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels, and various downstream high-value chemicals, for decarbonization in hard-to-abate industries. It plans to produce 5 million tonnes per annum (mtpa) of green ammonia, with the first 1 mtpa project in Kakinada 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, will cost about ₹12,500 crore. AM Green has already signed offtake agreements with major buyers including Uniper, Yara, and Keppel. AM Green is also investing in logistics to export its green ammonia abroad. In May, it signed an agreement with the Port of Rotterdam Authority to build a green energy supply chain between India and Northwestern Europe. In January, it partnered with global logistics major DP World to set up advanced logistics and storage infrastructure for green hydrogen and green ammonia exports. It has also partnered the world's second largest miner Rio Tinto through AMG Metals & Minerals to set up the biggest global green energy based aluminium production facility in India at an investment of around $6 billion for a 1 million tonne per annum (mtpa) aluminium smelter and a 2 million tonne alumina production facility in India. India's green energy space has witnessed tremendous interest, given its green energy transition trajectory. India has an installed renewable energy capacity of 226.9 GW; of which solar and wind power account for 110.9 GW and 51.3 GW respectively. India's playbook is to add 50GW of green energy capacity annually to reach 500GW renewable capacity by 2030. Attracted by India's green energy transition trajectory, there are several green energy deals in play including the Philippines' Ayala Corp.'s ACEN and UPC Renewables joint venture (JV) green energy platform— UPC Renewables India—plans to sell a significant stake in its upcoming 1GW projects in India; in a deal potentially valued at an enterprise value of around $600 million, as reported by Mint earlier. However, there have also been some emerging concerns such as solar energy tariffs taking a nose dive, power demand in India's top six industrialized states flattening in April and cooling in May, power transmission evacuation constraints, and states not inking power purchase agreements (PPAs) and power supply agreements (PSAs) for awarded projects due to drop in tariffs in the subsequent bids. Mint earlier reported about renewable power capacity totalling nearly 30GW has failed to find buyers; with a capacity of at least 15GW is yet to find PPAs, while at least 14GW is awaiting PSAs.
