Anglo-Dutch energy major Shell has signed a deal with Cleantech Solar, a leading provider of renewable energy to corporations in India and Southeast Asia, to acquire 49 percent equity in the company.
“The agreement, signed on Wednesday, also envisages the possibility of Shell increasing its equity in Cleantech beyond the 49 percent after 2021,” a statement issued by Cleantech on Wednesday said.
The equity acquisition deal by Shell is expected to be closed by January 2019.
Cleantech, a leading commercial and industrial solar energy systems company operating in India and Southeast Asia, was set up by a group of financial professionals who were earlier part of international financial powerhouse Barclays.
The Anglo-Dutch major will make the investment in Cleantech through its subsidiary, Shell Eastern Petroleum (Pte) Ltd.
The stake acquisition in Cleantech Solar will be Shell’s second major investment in the solar energy sector this year, giving the Anglo-Dutch major an immediate path to an established commercial and industrial platform in Southeast Asia and India.
According to the announcement, Cleantech Solar will continue to operate under its existing management and name.
Over the last four years, Cleantech Solar has witnessed substantial growth, having signed over 120 contracts with local and multinational corporations in the region. The company’s solar plants have generated over 100 million kWh units of electricity.
"We are very impressed by Cleantech Solar’s record of developing lasting relationships with multinational and regional corporations who are eager to implement subsidy-free renewable energy into their corporate strategies,” said Marc van Gerven, Shell vice president of solar and storage.
Asia is a significant commercial and industrial solar generation market for Shell and we are proud to work with Cleantech Solar as a leading solar company in the region, he added.
“This partnership with Shell, a global energy company, brings their resources and capabilities as they build a global renewable power business and it gives us a tremendous boost in our home region,” Cleantech Solar’s chairman and founder Raju Shukla said.
"From the day Cleantech Solar was founded, we wanted it to become the most trusted provider of solar power for the leading corporations of Asia. I’m honoured that Shell values the strength, agility, and responsiveness of the teams we’ve developed in each of our markets," he added.
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