According to reports, a proprietary investment arm of Morgan Stanley is in advanced talks to invest about $200 million, roughly Rs 1,000 crore, for 51% stake in Continuum Energy Pte Ltd (CEPL), a Singapore-based holding company developing wind power assets in India, said a source directly briefed on the matter.
Continuum Energy, co-founded by former investment banker Arvind Bansal and others, is a two year-old start-up which is building a portfolio of wind farms through acquisitions and green field development. This is the latest among the big buck PE deals firing the ambitions of renewable and clean energy entrepreneurs in the country.
The ongoing discussions with Morgan Stanley are at a crucial stage and a deal could be announced within a month, sources added. The potential deal comes six months after the Wall Street peer Goldman Sachsbought majority stake in another start-up ReNew Wind Power, founded by Sumant Sinha, a former chief operating officer of Suzlon Energy.
The proposed deal structuring suggests that Morgan Stanley would initially hold 51% stake in Continuum Energy and, depending on the company’s performance, this be diluted to about 40% over a period of time.
CEPL acquired Surajbari WindFarm Development Private Limited, the wind farm assets of European wind power generation major Vestas, operating in the Kutch region of Gujarat. There are not too many details about Continuum Energy publicly available at the moment. An emailed query to Morgan Stanley remained unanswered at the time of going to press while Continuum Energy could not be reached for immediate comments.