O2 Power Transitions Under New Ownership
Deal News | Dec 27, 2024 | EQT
EQT Infrastructure IV and Temasek have announced the sale of their joint venture O2 Power, an Indian renewable energy platform, to JSW Neo Energy for USD 1.5 billion. Established by EQT and Temasek in 2020, O2 Power has become one of India's largest renewable energy providers, with a secure capacity of 4.7 gigawatts focusing on solar, wind, and hybrid energy solutions. The transaction marks EQT's first infrastructure exit in the Asia Pacific region, aligning with their strategy of energy transition investments. O2 Power's growth and strategic positioning in India's rapid renewable energy market contributed to its successful development and eventual sale. It achieved significant milestones despite the COVID-19 pandemic, aided by a robust governance framework and strategic innovation. Financial and legal advisory firms Barclays and A&O Shearman supported the transaction on behalf of EQT and Temasek. The deal highlights the ongoing energy transition efforts in India, aiming to meet ambitious government renewable energy targets.
Sectors
- Renewable Energy
- Private Equity & Investment Management
Geography
- India – O2 Power operates within India, making the case significant within the country's renewable energy sector and its ambitious energy goals.
- Asia Pacific – The deal marks EQT's first infrastructure investment and exit in the Asia Pacific region, emphasizing geographical importance.
Industry
- Renewable Energy – The article focuses on the sale of O2 Power, a leading company in renewable energy specializing in solar, wind, and hybrid energy solutions, indicating its relevance to the renewable energy industry.
- Private Equity & Investment Management – The transaction involves EQT and Temasek, both significant players in private equity and investment management, highlighting transactions and exits within this sector.
Financials
- USD 1.5 billion – The sale price of O2 Power to JSW Neo Energy.
- 4.7 gigawatt – O2 Power's secured total capacity in renewable energy projects.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| EQT Infrastructure IV | Selling Company | Company | A fund of EQT focused on infrastructure investments, selling its stake in O2 Power. |
| Temasek | Selling Company | Company | A global investment company headquartered in Singapore, co-owning O2 Power alongside EQT. |
| O2 Power | Target Company | Company | An Indian renewable energy platform focusing on solar, wind, and hybrid projects. |
| JSW Neo Energy | Bidding Company | Company | The buyer of O2 Power, a subsidiary of JSW Energy, marking its expansion in renewable energy. |
| Barclays | Financial Advisor | Company | Served as financial advisor to EQT and Temasek in the sale of O2 Power. |
| A&O Shearman | Legal Advisor | Company | Provided legal advisory services to EQT and Temasek for the transaction. |