Abu Dhabi Future Energy Company (Masdar) has officially withdrawn from the consortium involved in the attempted acquisition of India’s ReNew Energy Global, listed on the Nasdaq. This decision brings discussions regarding the energy producer’s privatisation to a close, according to a statement filed with US authorities.
A decisive exit after months of negotiation
The consortium included Platinum Hawk, a subsidiary of Abu Dhabi Investment Authority (ADIA), Canada Pension Plan Investment Board (CPP Investments), and ReNew’s founder, Chairman and Chief Executive Officer, Sumant Sinha. A special committee of ReNew’s board of directors was formed to review the offer, with Rothschild & Co acting as independent financial adviser and legal counsel provided by Linklaters.
Masdar’s withdrawal follows nearly a year of negotiations, during which the offer price was raised from $7.07 to $8.15 per share in cash. The increase had been announced on October 14, two months before the deal’s failure.
Sharp market response to the project’s abandonment
Following the announcement, ReNew’s stock fell nearly 28% in trading to $5.26, marking its lowest level in twelve months. The decline reflects investor disappointment, as the anticipated buyout valuation was significantly above the current market price.
In its statement, ReNew expressed disappointment with Masdar’s withdrawal, which terminated all ongoing discussions related to the proposed transaction. No further comments were made regarding the reasons behind Masdar’s decision, leaving room for speculation about strategic alignment between the parties.
Ownership structure led by sovereign funds
ReNew Energy Global, ranked as India’s second-largest renewable energy producer behind Adani Green, currently operates 10.3 gigawatts of installed capacity across solar, wind, hydro and hybrid projects. Its operations are primarily based in India.
According to LSEG data, CPP Investments holds 31.3% of ReNew’s equity, followed by ADIA with a 23.8% stake. These two investors were key members of the consortium attempting to acquire the company. No new plans to revive the buyout have been announced at this time.
