Canada-based Ontario Teachers’ Pension Plan Board will buy a 30 percent stake in Mahindra Group’s renewable energy platform Mahindra Susten for Rs 711 crore.
The parties have approved binding agreements according to which Ontario Teachers’ will buy the Mahindra Susten stake at an equity value of Rs 2,371 crore. The transaction would help Mahindra Susten create a powerful renewable energy business.
The Mahindra Group said the contract also envisages the setting up of an infrastructure investment trust in obedience to the legislation of the Securities and Exchange Board of India.
The companies will furthermore arrange an infrastructure investment trust, including renewable power assets seeded by Mahindra Susten with operational capacities of about 1.54 GWp, by FY24, Mahindra Group said in a regulatory update.
“Mahindra Group and Ontario Teachers’ Pension Plan Board announced a strategic partnership to capitalize on the growing renewables opportunity in India and contribute towards the country’s decarbonization ambitions,” it said. As a result of this transaction, the Mahindra Group will receive around ₹1,300 crores.
“The partnership with Ontario Teachers’ will enable the Mahindra Group to unlock value in the renewable energy sector with continued joint investments towards accelerated growth. Mahindra Group aims to be Planet Positive by 2040 and the continued inflow of patient, long-term capital in our climate-positive businesses is the validation of our commitment to being a global Environmental, Social and Governance leader,” said Puneet Renjhen, member of the group executive board and executive Vice President partnerships & alliances at Mahindra Group.
Deepak Thakur, managing director, and chief executive of Mahindra Susten, said the partnership with Ontario Teachers’ syncs with Mahindra Susten’s schedules to substantially expand its green energy portfolio across solar PV, wind, and energy storage.
