Ontario Teachers' to acquire 30% stake in Mahindra Susten for Rs 2,371 cr

Mahindra Group on Thursday announced that it has tied up with Ontario Teachers' Pension Plan Board to capitalise on renewables in India. Under the agreement, Ontario Teachers' will acquire a 30 per cent stake in Mahindra Susten Pvt Lts for Rs 2,371 crore. Then, Mahindra Group and Ontario Teachers' will jointly explore the sale of an additional 9.99 per cent in Mahindra Susten.

Under the agreement, the companies will also establish an Infrastructure Investment Trust (InvIT) comprising renewable power assets of Mahindra Susten with an operation capacity of 1.54 GWp. Moreover, with the proceedings of the stake sale, Mahindra Susten will repay Rs 575 crore worth of loans to Mahindra Group.

The transaction will enable Mahindra Sustain to build a renewable energy business focused on solar energy, hybrid energy, integrated energy storage and round-the-clock green energy plants.

"As part of our climate change strategy, we have committed to continue growing our portfolio of green assets around the globe with investments like Mahindra Susten," Bruce Crana, senior managing director, Asia Pacific (Investment and Natural Resources) at Ontario Teachers'.

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Under the United Nations Framework Convention on Climate Change, India has committed to reducing the emissions intensity of its gross domestic product (GDP) by 45 per cent by 2030 from its 2005 levels.

Moreover, it has also committed to producing 50 per cent of its power from non-fossil fuels by 2030.

"The partnership with Ontario will enable the Mahindra Group to unlock value in the renewable energy sector with continued joint investments towards accelerated growth," added Puneet Ranjhen, member of group executive board and executive vice-president at Mahindra Group.