Refex Green Power Ltd, a wholly owned subsidiary of Refex Renewables & Infrastructure Ltd, has completed the acquisition of three companies to strengthen for a cash consideration of ₹5.09 crore.
The company has acquired 100% equity stakes in Refex Vayu SPV 1 Pvt Ltd and Grey To Green Transition Pvt Ltd, which is proposed to be renamed Refex Vayu SPV 3 Pvt Ltd. It has also acquired a 49% stake in Refex Vayu SPV 2 Pvt Ltd.
Acquisitions create new project entities
Refex Green Power acquired Refex Vayu SPV 1 for ₹2.55 crore and Grey To Green Transition for ₹1 lakh from Refex Holding Pvt Ltd (RHPL), making both entities step-down wholly owned subsidiaries.
It acquired the 49% stake in Refex Vayu SPV 2 from RHPL for ₹2.53 crore, making the company a step-down associate. All three entities are yet to commence operations.
Transactions classified as related-party deals
The acquisitions constitute related-party transactions as the entities are presently owned and controlled by the promoter and holding company, RHPL.
The transactions are proposed to be undertaken on an arm’s length basis, based on fair valuation of the equity shares obtained from an independent chartered accountant.
SPVs to support wind power projects
The acquisitions are aimed at strengthening Refex Green Power’s renewable energy portfolio and expanding its presence in wind power generation.
The company has been awarded certain tenders for wind power projects for which new special purpose vehicles are required to be established. The acquired entities will be utilised for setting up wind independent power producer projects.
Companies to facilitate timely PPAs
Refex Green Power said the acquired SPVs are readily available for undertaking the projects and entering into power purchase agreements in time.
The company expects the entities to support the development of its awarded wind projects and enable it to expand its renewable energy operations through dedicated project vehicles.