Private Equity

PE Fund Investments

Ontario Teachers' to buy 30% stake in renewable co Mahindra Susten for Rs.711-Cr

BSE Announcement  

Canadian fund Ontario Teachers' Pension Plan (via its unit “2452991 Ontario Limited” or 2OL) is to acquire a 30% stake in renewable energy firm Mahindra Susten Pvt Ltd (MSPL), from a unit of publicly listed Mahindra & Mahindra, for INR 711 crore. Ontario Teachers plans to acquire an additional 9.99% stake in Mahindra Susten by May 31, 2023. Avendus Capital acted as financial advisor and Khaitan & Co, as legal advisor to the Mahindra Group for the transaction. Ambit acted as financial advisor and Cyril Amarchand Mangaldas acted as legal advisor to Ontario Teachers' for the transaction. The transaction envisages the setting up of an Infrastructure Investment Trust (InvIT) by FY24, that is 65% owned by Ontario Teachers, to which the identified operational assets seeded by Mahindra Susten will be transferred. As part of the transaction, shareholder loans of INR 575 crore advanced by Mahindra Group to Mahindra Susten will be repaid. MSPL is led by its MD & CEO Deepak Thakur. The Revenue from Operations of MSPL for the year ended March 2022 was INR 595.48 crore and its Net Worth was INR 997.67 crore. Mahindra Group will deploy the resulting funds, plus an incremental amount of up to INR 1,750 crore , into the business and InvIT over the next seven years. Over the same period, Ontario Teachers has committed to deploy an additional amount of up to INR 3,550 crore into the business and the InvIT.