UK Green Investment Bank Plc and State General Reserve Fund of Oman are in discrete talks with Leap Green Energy Pvt. Ltd to acquire a stake in it. Leap Green Energy is backed by the leading banking company, JPMorgan.
SGRF is responsible for managing the gas and oil revenues of Oman and has an extending branch in 25 countries. On the other hand, Green Investment Bank is controlled and owned by the government of U.K.
The leading Indian newspaper, Mint reported that the investment arm of JP Morgan, JP Morgan Asset Management Holdings Inc. reportedly plans to sell half of their stakes in Leap Green Energy.
The four people, who disclosed this talk to acquire stakes, has asked to remain anonymous. They also said – “SGRF is interested in buying a stake in Leap Green. JPMorgan has been looking for a buyer for some time now.”
With interest pitched by Narendra Modi to invest during his UAE visit, the Investment Corp of Dubai through their arm, Dubai Holding LLC is looking for full-proof investments in India for their renewable energy. SGRF’s interest was spiked as sovereign wealth funds through West Asia seeking to aid India in clean energy program.
Currently, JPMorgan holds 75 percent of stake in Leap Green Energy, and has made an overall investment of $100 million in Leap Green Energy.
As reported by one of the people from the group of four individuals, “JPMorgan has no immediate plans to offload control stake. While JPMorgan will sell a part stake, a promoter will raise primary money through stake dilution.”
According to the information found in SGRF’s website, a joint investment fund involving Oman and India, has raised $200 million for their funding and is targeting a transaction of $300 million by this year end.
According to experts, it is good for India, if more and more foreign investments are procured in the green energy sector of India.
Sambitosh Mohapatra, PwC India says, “Indian power sector is seeing the continued, and enthusiastic response from international investors post the development in cleaning up the distribution industry.”
The UK govt. is planning to sell GIB to Macquarie Group Ltd, and the deal is expected to be finalized soon.
Apart from this, the other leading deals in Indian energy includes Tata Power Co. Ltd trading overall and estimated value of 1.1 GW energy from Welspun Energy Ltd for approx 1.4 billion dollars, and Abu Dhabi Investment Authority buying SunEdison’s assets for 392 million dollars.