SunEdison planning to buy Continuum Wind Energy of India for $620m

SunEdison is in negotiation with India based Continuum Wind Energy to acquire the company as it looks to expand its clean energy footprint in the country.

The Economic times cited sources familiar with the matter as saying that SunEdison has already offered $620m-$650m to Continuum Wind Energy including debt.

Continuum Wind Energy is an independent renewable energy producer, founded by Arvind Bansal and Vikash Saraf of the Essar Group but it is presently controlled by Morgan Stanley Infrastructure (MSI), Morgan Stanley’s infrastructure-focused private equity fund.

The offer comes in the wake of Modi government’s target to add 100GW renewable capacity by 2022.

Indian clean energy sector is reportedly attracting foreign players, as previously Sembcorp and investors including Goldman Sachs took control of Indian clean power developers.

The source told the newspaper: "The intent from both sides is very strong but there is still no guarantee that the talks will translate into a deal.

"SunEdison should complete the diligence and commercial negotiations by June-end and then make a binding offer."

According to reports, by the end of the fiscal ending March 31, 2016, Continuum is expected to have its portfolio of projects spread across MP, Gujarat and Maharashtra with combined capacity of 500MW.