The board of ACME Solar Holdings Ltd has approved a Scheme of Amalgamation involving the merger of ACME Pokhran Solar Pvt Ltd, ACME Sikar Solar Pvt Ltd and ACME Eco Clean Energy Pvt Ltd Holdings Ltd with and into ACME Solar Holdings.
ACME Pokhran Solar and ACME Sikar Solar are direct wholly owned subsidiaries of ACME Solar, while ACME Eco Clean Energy is a subsidiary of Pokhran Solar and an indirect wholly owned subsidiary of the company.
Group structure to be consolidated
As the three transferor companies are direct or indirect wholly owned subsidiaries of ACME Solar, all equity shares held by the transferee company in the transferor companies will stand cancelled and extinguished.
Accordingly, ACME Solar will not issue or allot any shares as consideration to the shareholders of the transferor companies upon the Scheme coming into effect.
No cash or share consideration
The investments held by ACME Solar in the shares of the transferor companies and appearing in its books of account will also stand cancelled without any further act or deed.
The company said there will be no cash or share consideration involved in the Scheme and no change in the shareholding pattern of the listed transferee company.
Three operating projects involved
ACME Pokhran Solar is engaged in establishing, commissioning, operating and maintaining renewable energy projects. It operates a 50 MW wind power project under a power purchase agreement with Gujarat Urja Vikas Nigam Ltd.
ACME Sikar Solar operates in the renewable energy sector and has a 300 MW solar power project under a power purchase agreement with Solar Energy Corporation of India.
Renewable portfolio spans technologies
ACME Eco Clean Energy is also engaged in renewable energy projects and operates a 100 MW wind power project under a power purchase agreement with Gujarat Urja Vikas Nigam.
ACME Solar Holdings, together with its subsidiaries, is an integrated renewable energy company with a portfolio covering firm and dispatchable renewable energy, battery energy storage systems, solar, hybrid and wind projects.
Focus on operational efficiencies
The group develops, builds, owns, operates and maintains utility-scale renewable energy projects. It generates long-term revenue through fixed-tariff power purchase agreements.
The proposed amalgamation is expected to simplify and consolidate the group structure while improving operational, financial and administrative efficiencies.
Cash flows and financing to be optimised
ACME Solar said the Scheme will help optimise project cash flows and financing arrangements and eliminate inter-company arrangements.
The amalgamation is also expected to strengthen the infrastructure business of the listed company by consolidating the relevant renewable energy assets and operations under a simplified corporate structure.