Yinson Forays into Renewable Energy via Buying 37.5% Stake in Indian IPP

Malaysian company Yinson, via its arm Yinson Renewables (S) Pte Ltd, has forayed into the renewable energy segment and bought 37.5 percent stake in the Indian Independent Power Producer (IPP) Rising Sun Energy Pvt Ltd (RSE).

The company said that it has signed “multiple agreements to acquire a 37.5 percent equity interest in RSE, a company with 2 operational solar plants in the Bhadla Solar Park, Rajasthan, India”.

Commenting on the deal, Lim Chern Yuan, Chief Executive Officer of Yinson Group, said that “this acquisition is a significant milestone for the company as it marks Yinson’s foray into renewable energy.”

As per the pact, Yinson will pay Rs 554 million (RM 32 million) for the shareholding, subject to closing conditions.

On the other hand, it will also provide funding of Rs 600 million (RM 35 million) to repay certain outstanding liabilities of the Indian IPP.

RSE’s these 2 adjoining solar plants have a combined generation capacity of 140 MW (AC rated) and had already commissioned in 2017.

Also, RSE had signed 25-year Power Purchase Agreements (PPA) for the plants with NTPC Ltd, India’s largest power utility, majority-owned by the Government of India. These PPAs will be expiring in the year 2042.

“India is an important growth market for our renewables segment, and we are excited to be playing a part in India’s renewable growth strategy. We look forward to working with the RSE team towards achieving our shared objectives,” commented David Brunt, Yinson Chief Executive Officer for Renewables.

The company said that this transaction is in line with it’s strategy for its renewables division, established in 2019.

It further added that this acquisition supports Yinson’s vision of becoming a global energy solutions provider, specifically relating to its diversification into renewable energy generation assets.

Commenting on stake divestment, Arunav Sharma, Founder & Chief Executive Officer of Rising Sun Energy, said “we welcome Yinson as a new shareholder which will support RSE’s objectives to grow the business and become a leading renewable energy developer and operator. We believe that Yinson’s support and expertise will help to open up greater opportunities for RSE, both in India and globally.”