ReNew Global Energy’s Promoters Raise Buyback Offer to $8.15

ReNew Global Energy Plc announced on October 10, 2024, that its promoters have submitted a final non-binding offer to purchase shares and delist the company from Nasdaq. The revised offer price has been set at $8.15 per share, payable in cash. This marks an increase from the previous offer of $8 made in June and a significant rise from the initial proposal of $7.07 per share in December 2023.

The latest offer represents a notable increase of $1.08 per share, equivalent to 15.3% over the initial proposal dated December 10, 2023. It also signifies a 28.5% premium compared to the undisturbed share price of $6.34 on that same date, which was the closing price before the initial proposal became public. Additionally, the revised offer delivers a 41.5% premium over the 30-day volume-weighted average price of $5.76 per share as of December 10, 2023.

Special Committee Evaluates Offer

In light of the proposal, ReNew’s board of directors has established a special committee to assess the offer from the promoters’ consortium. The committee is chaired by lead independent director Manoj Singh and consists of six independent non-executive directors. They are currently collaborating with independent financial adviser Rothschild & Co. and independent legal counsel Linklaters LLP to thoroughly evaluate the revised proposal.

The company stated, “Active discussions with the consortium remain ongoing, and the special committee will provide a conclusive update as soon as reasonably practicable.” It also cautioned that no guarantees can be provided regarding the likelihood or details of any potential transaction arising from the revised proposal.

Promoters’ Background

The buyout plan was originally proposed by a consortium that includes the Canada Pension Plan Investment Board (CPPIB), the Abu Dhabi Investment Authority (ADIA), and founder Sumant Sinha, along with new investor Masdar. This consortium collectively holds a 64% stake in ReNew Global Energy. The addition of Masdar, a UAE government-backed renewable energy firm, highlights the growing interest and investment in the renewable energy sector.

As discussions progress, the special committee will continue to assess the implications of the buyback offer, keeping in mind the interests of existing shareholders and the company’s future direction. Further decisions and disclosures will be made as appropriate, ensuring transparency throughout the evaluation process.