Sterling and Wilson Solar shares on Monday jumped 17 per cent after Mukesh Ambani-led Reliance Industries Ltd agreed to buy up to a 40 per cent stake in the Shapoorji Pallonji Group firm. Sterling and Wilson Solar shares zoomed 17 per cent to its 52-week high of ₹509 on BSE. It jumped 17 per cent to its 52-week high of 509.10 on the National Stock Exchange (NSE). Shares of Reliance Industries gained 2 per cent to its record high of ₹2,724.70 on BSE.
Reliance New Energy Solar Limited (RNESL), a wholly-owned subsidiary of Reliance Industries, on Sunday announced the agreements with Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala and Sterling and Wilson Solar Limited to acquire a 40 per cent stake in Sterling and Wilson Solar Ltd in a multi-stage transaction for about ₹2,845 crore.
The series of transactions include preferential allotment of 2.93 crore equity shares or equivalent to 15.46 per cent post preferential share capital at a price of Rs. 375.0 per share and acquisition of 1.84 crore equity shares by RNESL from SPCPL or equivalent to 9.70 per cent post preferential share capital at a price of Rs. 375.0 per share. It also includes public announcement by RNESL to the public shareholders of SWSL to acquire up to 4.91 crore equity shares of SWSL, representing 25.9 per cent in accordance with SEBI Takeover Regulations, and RNESL will hold 40.0 per cent of the equity capital of SWSL, consequent to acquisition in the open offer, follow-on acquisition of shares from SPCPL and Khurshed Daruvala, and sell down, if any required.
Khurshed Daruvala will continue to be chairman of the board and lead the next phase of growth for SWSL, according to a statement. The transaction is subject to customary regulatory and other approvals and closing conditions. AZB and K Law acted as legal advisors, Ernst and Young as the accounting and tax diligence advisor and Edelweiss as the financial advisor to Reliance. DAM Capital acted as financial advisor and Desai & Diwanji acted as legal advisor to SWSL and the selling shareholders.
{{/usCountry}}Khurshed Daruvala will continue to be chairman of the board and lead the next phase of growth for SWSL, according to a statement. The transaction is subject to customary regulatory and other approvals and closing conditions. AZB and K Law acted as legal advisors, Ernst and Young as the accounting and tax diligence advisor and Edelweiss as the financial advisor to Reliance. DAM Capital acted as financial advisor and Desai & Diwanji acted as legal advisor to SWSL and the selling shareholders.
{{/usCountry}}Reliance Industries also announced a $771 million buyout of Norway-based solar panel manufacturer REC Solar Holdings. RNESL acquired "100 per cent shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd for an Enterprise Value of USD 771 million (about ₹5,800 crore)," the firm said in a statement.
(With agency inputs)