A consortium of led by Keppel Corporation is acquiring a 51% equity interest in Asian clean power company Cleantech Solar.
Keppel Asia Infrastructure Fund (KAIF) and a co-investor of KAIF through Cloud Alpha are the other members of the consortium.
The remaining 49% will continue to be held by existing shareholder Shell Eastern Petroleum.
Cleantech Solar founder and chief executive Raju Shukla said: “It is indeed a matter of great pride that we now have the backing from Keppel Corporation and Shell – two world leading corporations with long term commitment to renewable energy, sustainability, and net zero emissions.
“Cleantech is targeting to achieve a cumulative generation capacity of 3GW within five years.”
Keppel chief executive Loh Chin Hua said: “The investment in Cleantech reflects Keppel’s commitment to sustainability and our Vision 2030 plans to grow our renewables business.
“It allows us to not only tap the expertise and experience of Cleantech in solar energy projects, but also explore opportunities for collaboration with other parts of the Keppel Group.
“Through acquiring a majority stake in an established platform together with KAIF and a like-minded investor, we would be able to accelerate Keppel’s growth in the renewables space, as we work towards achieving and surpassing our target of 7GW of renewable energy assets by 2030.”
Completion of the transaction is subject to, and conditional upon, certain customary conditions, including regulatory and other approvals.
The transaction is expected to close in the first quarter of 2022.
Standard Chartered acted as exclusive Financial Advisor to Cleantech Solar for this transaction.