In a significant move within the renewable energy sector, ORIX Corporation has agreed to sell its entire stake in Greenko Energy Holdings to AM Green Power B.V. for $1.46 billion. The transaction, announced today, is expected to close by the end of March 2025, pending regulatory approvals and customary closing conditions.
ORIX, which initially invested in Greenko in March 2021, holds a 20% share in the company, known for its substantial renewable energy operations in India. Greenko boasts an installed capacity of 7.3 GW across solar, wind, and hydroelectric power generation and is developing large-scale pumped storage power generation projects.
The decision to sell comes as part of ORIX’s capital recycling strategy, allowing the company to reinvest in the next generation energy sector, including green molecules—a market anticipated to grow swiftly amidst global decarbonization efforts.
Simultaneously, ORIX plans to invest in a convertible note issued by AM Green (Luxembourg) S.à.r.l, the parent company of AM Green Power B.V., with an underwriting amount of $731 million. This move aligns with ORIX’s strategic focus on renewable energy, including its recent acquisition of Elawan Energy S.L., expanding its global renewable energy footprint to approximately 4.5GW.
AM Green Power B.V., established in 2023 by Greenko’s founders, is a next-generation energy company developing green hydrogen and ammonia projects. Its first green ammonia project, with a production target of 1 MTPA, is underway in Kakinada, India, with completion expected in the second half of 2026.
The financial implications of the transaction are significant for ORIX. Based on the exchange rate as of January 16, 2025, the company anticipates a pre-cost gain of approximately ¥96.5 billion in its consolidated financial statements for the fiscal year ending March 31, 2025. This projection has been factored into the consolidated earnings forecast previously announced on May 8, 2024.
The information in this article is based on the latest SEC filing by ORIX Corporation.
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