Sterling and Wilson Renewable Energy Ltd (SWREL) on Monday said that Reliance New Energy Solar Ltd (RNESL) has become its promoter post payment of balance Rs 1,583 crore for acquisition of 25.90 per cent equity in it.
With this transaction, RNESL and other group firms together hold over 40 per cent stake in SWREL.
Earlier RNESL (acquirer), Reliance Industries Ltd (RIL) and Reliance Ventures Ltd (RVL) had made initial payment of Rs 259 crore for acquisition of 49,13,791 shares or 25.90 per equity stake in the SWREL, showed a BSE filing.
Consequent to the allotment of the subscription shares and in accordance with the terms of the SSA and the SEBI (SAST) Regulations, the acquirer (RNESL) has been classified as a promoter of the target company (SWREL) along with the existing promoter and promoter group of the target company with effect from December 30, 2021, it stated.
On December 30, 2021, the acquirer deposited an additional over Rs 1,583 crore in the cash escrow account, opened by the acquirer, which together with the initial cash deposit of Rs 259.26 crore, made by the acquirer, “is equivalent to 100 per cent of the offer consideration payable under the open offer, assuming full acceptance of the open offer”, it said.
It further stated that the target company, after the receipt of shareholders’ approval on November 2, 2021, fulfilment of other conditions precedents under the SSA and in accordance with the articles of association of the target company, issued and allotted the subscription shares to the acquirer on December 30, 2021.
Earlier in October this year, RNESL had executed definitive agreements with Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala, and Sterling & Wilson Solar Ltd (SWSL) to acquire 40 per cent stake post-money in SWSL through a series transactions.
Sterling & Wilson Solar Ltd is now known as Sterling and Wilson Renewable Energy.
Last week, SWREL also approved the allotment of 2.93 crore equity shares for Rs 1,099 crore to Reliance New Energy Solar Ltd.
Post this transaction, RNESL held 15.46 per cent paid-up equity share capital of SWREL.
“The board of directors of the company at its meeting held on December 30, 2021 approved the allotment of 2,93,33,333 equity shares of face value rupee one each fully paid-up in a dematerialised form by way of preferential allotment for cash consideration, to RNESL at a price of Rs 375 per equity share aggregating to Rs 1,099.99 crore,” a regulatory filing had stated.