Japan’s ORIX Corporation Completes Acquisition of Shares in Greenko

ORIX has completed the acquisition of shares in Greenko Energy taking 21.8% of the firms’ shares for a total value of approx USD 961 million.

ORIX Corporation (ORIX) has announced that it has completed the acquisition of shares in Greenko Energy Holdings (Greenko) as reported by both firms on September 11, 2020. Simultaneous to acquiring the issued shares in Greenko, ORIX has announced that it has integrated its entire wind power generation business in India into Greenko in exchange for new additional shares of Greenko. 

Accordingly, ORIX has acquired approximately 21.8 percent of Greenko for a total value of approximately USD 961 million.

Greenko, ORIX claims, is one of the two major Indian renewable energy operators; it manages renewable power generation facilities with a total capacity of 6.9 GW in operation—including solar, wind, and hydro—and has additional capacity of more than 8 GW either under construction or in development. 

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The IPP has long-term power purchase agreements (PPA) averaging over 20 years with India’s government-run agencies, state-owned power companies, and other entities, providing a stable income base while achieving further growth to meet India’s long-term goals of achieving energy sustainability and independence.

ORIX is committed to contributing value to society through its business activities. International expansion of its renewable energy business is a key management strategy in its efforts to realize a sustainable society.

In December 2020, ORIX agreed to acquire Elawan Energy, a global renewable energy business headquartered in Spain. When combined with existing assets, ORIX’s global renewable energy portfolio boasts a total installed generating capacity of approximately 3.3 GW (3,300MW) including solar, wind, hydro, geothermal, and other resources. 

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Going forward, the firm intends to use the experience and expertise it has cultivated to further expand its renewable energy business both within Japan and across the globe.

In September 2020, we had reported that the diversified Japanese financial conglomerate, had made one of the largest single renewable energy investments into India, with a USD 980 million (Rs 7200 crores) on renewable major Greenko Group. The deal was expected to be closed by the end of 2020.

For Greenko, the investment by Orix follows previous investments from sovereign wealth funds GIC Investment of Singapore, and the Abu Dhabi Investment Authority, which have together pumped in over USD 2.2 billion in the firm.