CPPIB Said to Explore Buying Out ReNew Energy Shareholders

Canada Pension Plan Investment Board is exploring buying the shares of ReNew Energy Global Plc that it doesn’t already own and taking the Nasdaq-listed firm private, according to people with knowledge of the matter.

(Bloomberg) — Canada Pension Plan Investment Board is exploring buying the shares of ReNew Energy Global Plc that it doesn’t already own and taking the Nasdaq-listed firm private, according to people with knowledge of the matter.

The asset manager is in talks with advisers to weigh a tender offer, according to the people, who asked not to be identified discussing confidential information. CPPIB holds a majority stake in ReNew Energy, the people said, adding that talks are ongoing and no final decision has been reached.

Delisting of the Gurugram, India-based power producer, with a market capitalization of more than $2 billion as of Friday, will give CPPIB greater control over the firm that competes with deep-pocketed rivals. India presents a massive opportunity for clean energy developers as it aims to almost triple non-fossil fuel power capacity to 500 gigawatts by 2030.

A spokesperson for CPPIB said the company will not comment on market speculation, while ReNew’s spokesperson declined to comment.

ReNew Energy Global Plc Class A shares rose more than 13%, the most in at least two years, on Friday after Bloomberg News reported CPPIB’s plan to take it private. The stock had dropped to a record low earlier this month.

CPPIB bought $268 million worth of ReNew shares from Goldman Sachs this month, giving the Canadian firm a stake of 51.6%, according to the Business Standard newspaper. ReNew’s other backers include Abu Dhabi Investment Authority, according to data compiled by Bloomberg.

–With assistance from Rajesh Kumar Singh, Rohit Gadre and Vrishti Beniwal.

(Updates with shares in fifth paragrpah.)

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