Japan–based Orix Corporation has expressed its intent to acquire full ownership of seven power plants that it owns in a joint partnership with Infrastructure Leasing & Financial Services’ (IL&FS) Wind Energy Limited (Iwel), an Indian infrastructure development and finance company.
Orix currently holds a 49 percent stake in each of seven wind power plants, which generate a total of 870 megawatts of energy. Once the transaction is complete, it will acquire Iwel’s 51 percent stake as well. Orix also currently owns a 23.5 percent stake in Iwel’s parent firm, IL&F.
Earlier in the bidding process, New Delhi–based GAIL (India) Limited, or GAIL, the largest state-owned natural gas processing and distribution company in India, emerged as the highest bidder for the wind farm at 48 billion rupees ($687 million).
The exact bid amount submitted by Orix has not been disclosed.
However, Orix was enabled to acquire the share under the terms of an existing memorandum of understanding, which states that Orix can match the price offered by the highest bidder.
The transaction is expected to close by the end of June and is subject to legal approvals.
