GIC picks JPMorgan to advise on sale of its 50% stake in Greenko
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It was reported in October that GIC was considering options for its 50 per cent stake in Greenko Energy Holdings, including a sale.
PHOTO: REUTERS
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MUMBAI – Sovereign wealth fund GIC is working with JPMorgan Chase & Co to help advise on a strategic review of options including a sale of its 50 per cent stake in India’s Greenko Energy Holdings, people familiar with the matter said, in what could be one of the biggest disposals in the country.
A deal could value the renewable energy firm at about US$10 billion (S$13.4 billion), people familiar with the matter said, making the stake worth about US$5 billion.
The Singapore state investor is moving ahead with preparations for a potential deal that could involve a full or partial sale of its holding in Greenko, the sources said, asking not to be identified because the deliberations are private.
Some investment funds and strategic firms have expressed preliminary interest, they added.
A potential sale could put pressure on Greenko’s credit ratings and widen bond spreads, Bloomberg Intelligence analyst Sharon Chen wrote in a note on Dec 10.
“The impact depends on the profile of the buyer and whether sponsors will continue to fund around 25 per cent of the renewable company’s investments,” she said.
Considerations are preliminary and GIC could still decide against pursuing a deal, the people said.
Representatives of GIC and JPMorgan declined to comment.
Bloomberg News reported earlier in October that GIC was considering options for its 50 per cent stake in Greenko, including a sale.
Greenko, which has other backers including the Abu Dhabi Investment Authority (Adia) and Japanese financial group Orix, may also seek to raise funds in the coming months to help its growth, a person familiar with the matter said.
Dealmaking activity in India has jumped in 2024 amid interest from global investors seeking to tap the country’s growth potential.
The volume of deals involving Indian firms in 2024 has increased 23 per cent from a year earlier, according to data compiled by Bloomberg.
Greenko has 7.5 gigawatts of net installed capacity across wind power, solar power and hydropower in 15 states in India.
In 2023, it raised US$700 million from GIC, Adia, Orix and the company’s founders to invest in pumped storage projects. BLOOMBERG
