Ontario Teachers' to purchase 30% of Indian solar group Mahindra Susten

• Ontario Teachers' Pension Plan Board has accepted acquire a 30% stake in Indian solar installer Mahindra Susten Pvt Ltd, a unit of automotive group Mahindra & Mahindra (NSE: M&M), in a take care of an equity value of INR 23.7 billion (USD 397.1 m/EUR 298m).

The Canadian pension fund said on Friday it has actually secured binding arrangements for the purchase and also agreed to develop an infrastructure investment trust (InvIT) with its Indian companion. The brand-new lorry will certainly be introduced with a 1.5-GWp renewable energy portfolio seeded by Mahindra Susten.

As part of the bargain, INR 5.75 billion of car loans advanced by Mahindra Group to Mahindra Susten will certainly be repaid. Mahindra Group may offload an additional 9.99% stake in the solar design, procurement and also building and construction (EPC) firm to Ontario Teachers'. The prospective offer could be implemented by May 31, 2023, with funds from it to be transported right into the InvIT unit.

Over the next seven years, Mahindra Group will inject an added INR 17.5 billion into the joint service, while the Canadian pension fund will certainly contribute as much as INR 35.5 billion.

"The partnership with Ontario Teachers' will certainly allow the Mahindra Group to open value in the renewable resource field with ongoing joint financial investments towards increased growth," said Puneet Renjhen, Member of Group Executive Board as well as EVP, Partnerships & Alliances at Mahindra Group.

Ontario Teachers anticipates to conclude the procurement over the following few months. The production of the InvIT is pending regulative clearance and is anticipated to be finalised in financial 2024.