UltraTech Cement Limited has initiated (i) an Energy Supply Agreement and (ii) a Share Subscription and Shareholders Agreement in order to procure 26% equity shares of M/s O2 Renewable Energy XXII Private Limited. This company is actively involved in the generation and transmission of renewable energy. The purpose behind this acquisition is to fulfill the company’s green energy requirements, streamline energy expenses, and adhere to regulatory mandates concerning captive power consumption as outlined in electricity laws.
O2 Renewable Energy XXII Private Limited is the target entity of the proposed acquisition, characterized by its focus on the generation and transmission of renewable energy, particularly solar power. With a registered office in New Delhi, India, the company operates as a special purpose vehicle (SPV) dedicated to establishing a 35.20 MW AC / 47.52 MW DC solar power project in Karnataka. Incorporated on August 20, 2023, the entity’s turnover over the last three years is not applicable due to its recent establishment. The acquisition aims to meet green energy requirements, optimize energy costs, and adhere to regulatory mandates for captive power consumption under electricity laws.
This acquisition, involving a cash consideration of up to Rs. 15,68,00,000, will result in the acquirer obtaining a 26% shareholding/control in O2 Renewable Energy XXII Private Limited. The completion of the acquisition is anticipated within 180 days from the execution of the Energy Supply Agreement and Share Subscription and Shareholders Agreement.