GIP to buy global portfolio of Equis Energy for $5 bn

This would be the largest deal in the global renewable energy sector and is expected to close in the first quarter of 2018

Singapore-based renewable energy company Equis Energy, which has close to 900 Mw of assets in India, would sell its entire portfolio of 11,135 Mw to Global Infrastructure Partners (GIP), a leading infrastructure investor, for $5billion. This would be the largest deal in the renewable energy sector.

Equis Energy is one of the largest renewable energy independent power producers in the Asia-Pacific region and has operations in Japan, Australia, Indonesia, the Philippines, India and Thailand.

GIP has said its fund Global Infrastructure Partners III in conjunction with the Public Sector Pension (PSP) Investment Board, one of Canada’s largest pension investment managers, CIC Capital Corporation and a group of its other limited partner co-investors “agreed to acquire 100 per cent of the equity interests in the wind and solar renewable energy portfolio of Equis Funds Group for $3.7 billion.” Equis said the deal also included liabilities worth $1.3 billion, taking the deal size to $5 billion. It said the transaction was subject to customary regulatory closing conditions, and is expected to close in the first quarter of 2018. According to a Reuters report, GIP would own a stake of 50 per cent in Equis, while PSP and CIC would each own between 10 per cent and 20 per cent. 

In India, Equis had an operational portfolio of 900 Mw that includes 414 Mw of wind projects it acquired from Energon and 350 Mw from Soleq in India.

“GIP has a strong track record of managing and growing utility-scale infrastructure businesses, and the combination of experience and knowledge across GIP and the existing management team will allow Equis Energy to continue expanding,” David Russell, chief executive officer of Equis and chairman of Equis Energy, said. Adebayo Ogunlesi, chairman and managing partner of GIP said: “We look forward to continuing the Equis Energy success story and to supporting new growth opportunities in one of the most promising renewable energy markets in the world.”