One Of India’s Biggest Renewable M&A Deals: NIIF, KKR, Sembcorp in Race to Acquire Shell’s Sprng Energy

As per The Economic Times report, Shell Plc is reviewing offers from NIIF, KKR, and Sembcorp for its renewable energy unit, Sprng Energy. The sale process is part of Shell's strategic shift, potentially making it one of India's largest renewable energy deals. 

Shell Considers Full Exit from Sprng Energy 

Shell acquired Sprng Energy for $1.5 billion around 3 years ago from Actis and has since expanded its portfolio. It currently owns and operates 5GW worth of renewable energy projects. 

Shell launched a full exit strategy led by Barclays, following previous attempts at partial divestments which did not succeed due to valuation concerns. A spokesperson confirmed that Shell is evaluating options to unlock long-term value for Sprng Energy. 

Key Bidders and Offer Process 

NIIF, KKR, and Sembcorp submitted non-binding offers for the acquisition of Sprng in the final week of December. Macquarie also entered the race post-deadline, as there were no fixed timelines imposed, allowing more interested parties to join.  

The 3 initial offers were considered most competitive. Binding offers will be accepted after due diligence is completed. 

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Past Sale Attempts and Indian Operations 

Previously, Shell had held talks for partial asset sale involving 300MW and 100MW portfolios with Sekura Energy and ONGC respectively. Those talks stalled due to asset size and price gaps.  

Sprng is owned by Solenergi Power based in Mauritius, itself a 100% Shell subsidiary. Shell’s India portfolio includes LNG import terminals, EV charging infrastructure, lubricants, and fuel stations. 

Conclusion 

Shell’s move to potentially divest its 5GW renewable platform Sprng Energy has attracted interest from domestic and international players. The current round of non-binding bids puts NIIF, KKR, and Sembcorp at the forefront of one of India’s biggest renewable energy transactions.

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