Orix will sell most of its stake in Greenko Energy Holdings back to the Indian clean energy producer’s founders for $1.28 billion.
Tokyo-based Orix agreed to transfer a 17.5% holding in Greenko, out of its total ownership of 20%, to AM Green Power, which was established by the founders of Greenko, according to a statement on Monday. Orix will also invest about $731 million in a convertible note issued by parent company AM Green (Luxembourg) Sarl.
Orix shares gained as much as 3.6% in Tokyo on Monday, their biggest intraday gain since April 10.
AM Green aims to produce 5 million tons of green ammonia annually, and has the first 1 million tons-a-year project under construction in the coastal town of Kakinada in the state of Andhra Pradesh, the company said in a statement. The complex will also house a 2-gigawatt electrolyzer manufacturing factory as well as units to produce green chemicals, including sustainable aviation fuel.
With Monday’s deal, AM Green and its founders will own about 25% of Greenko, which is on track to build 10 gigawatts of renewable capacity and 100 gigawatt hours of daily storage capacity by 2030, according to the statement.
Orix originally agreed to sell its entire stake in Greenko in January, but the pact was terminated by the Japanese company in April. The buyers had failed to agree with funding partners over financing of the transaction, Orix said at the time.
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