GreenForest New Energies Bidco Ltd (UK) — a consortium led by BlackRock Real Assets along with Mubadala Investment Company — is investing in the renewable energy subsidiary of Tata Power Company Ltd, valuing the arm at Rs 34,000 crore. Mubadala is the sovereign wealth fund of Abu Dhabi.
Tata Power is also consolidating its renewable energy business under Tata Power Renewable Energy Ltd (TPREL).
The investment by the BlackRock consortium signals the Tata group’s intent to take on Mukesh Ambani and Gautam Adani who are ploughing billions of dollars in green energy.
GreenForest will invest Rs 4,000 crore ($525 million) in equity and compulsorily convertible instruments for around 10.53 per cent stake in TPREL. The final shareholding will be between 9.76 per cent to around 11.43 per cent based on the conversion price of the preference shares.
The agreement has an anti-dilution provision in the event of the issue of new shares, with GreenForest having the right to acquire equity shares on pro-rata basis to maintain its shareholding.
Tata Power said GreenForest will also have “customary tag along and drag along rights’’ for key strategic actions such as a change in business, capital restructuring and mergers and acquisitions.