Private Equity Fund Investments
Actis to buy 2 solar projects of Fortum India for $334-M
Global infrastructure investment firm Actis has acquired 500 MW Indian assets of Finland-based solar power producer Fortum. The assets include the 250-MW Pavagada II and the 250-MW Rajasthan solar power plants. The total consideration from the divestment on a debt and cash-free basis, including the effect of de-consolidating of the net debt, is expected to be about EUR 280 million (about USD 334 million). The divestment will be completed and the capital gain recorded in three tranches - during the second half of 2021 and the first half of 2022. The parties would also target further investments in solar power plants in India. Since 2013, Fortum has developed and constructed 680 MW of solar power in India. Over time, the majority of this capacity has been divested to enable further investments with a limited equity exposure, in line with the build-operate-transfer business model.
From the Venture Intelligence PE-VC Deal Database: Between Jun-18 and Nov-20, Fortum India had raised over $177-M from Finnfund, UK Climate Investments and others. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)
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