Morgan Stanley Infrastructure Partners, an arm of the US investment bank, has agreed to pay Rs1200 crore ($210m) to buy a majority stake in Continuum. This, says The Times of India, highlights the increasing interest of US private equity firms in India’s renewable energy assets.
Singapore-based Continuum Wind Energy, founded by Essar Group executive Vikas Saraf and investment banker Arvind Bansal, operates wind farms in India.
According to a source close to the transaction, preference shares are expected to be issued to Morgan Stanley, which can be converted into equity at a later date.
The purchase will be equivalent to more than a 50 per cent stake in the energy company.
Continuum was created through the acquisition of the Kutch-based wind energy assets of Denmark’s Vestas. It is now building large-scale wind farms to help address India’s power shortage.
Continuum will use the money to expand its business.
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