The buyout would allow the consortium to delist the company from the Nasdaq, where ReNew has underperformed since its 2021 listing. ReNew shares rose 3% in early trading Tuesday at $7.76 each, but are still down about 15% since listing.
The consortium consists of Masdar, CPP Investments, ADIA’s subsidiary Platinum Hawk and ReNew chairman Sumant Sinha. The company first made an offer last December at $7.07 per share and has since raised the price twice to win over other shareholders.
After the initial bid, a special committee headed by independent director Manoj Singh was set up to review the proposal.
The committee, advised by Rothschild & Co and Linklaters, “has indicated to the consortium that the key financial terms of the potential offer represent a value for which it would unanimously recommend ReNew shareholders to vote in favor, should a final binding offer be made on these terms,” the company said in a filing with the regulator.
Progress of the bid is dependent on finalizing terms, obtaining approvals and completing due diligence by the consortium, ReNew said. JERA Nex, the largest shareholder outside the consortium, “is currently prepared to vote in favor of this offer” if the special committee makes a unanimous recommendation, it added.
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