JSW, Sembcorp, ONGC shortlisted to acquire Ayana in $800 million deal
Notable because
Ayana Renewable Power was established by British International Investment (BII) and is now backed by the National Infrastructure Investment Fund (NIIF) and Eversource. The shareholders are looking to sell their stakes, potentially up to 100%, at an equity valuation of USD 800 million.
India’s Oil and Natural Gas Corporation (ONGC) is one of the three entities shortlisted to acquire Ayana. The bid by ONGC is especially notable, indicating an attempt to diversify its portfolio through clean energy holdings. It has pledged to invest USD 24 billion towards achieving net-zero emissions by 2038.
What to look out for in the months ahead
With renewable energy (RE) companies expanding their footprint, the market may see more conventional energy/oil and gas companies viewing RE as a potential investment avenue for diversification.
Considering that Indian Oil and BPCL also have net-zero targets for 2046 and 2040, respectively, will this deal encourage downstream oil and gas companies to undertake similar diversification?