InvestorQ : What is the stake sale that Mahindra has done to Ontario Pension Fund?
indhumathi Sayani made post

What is the stake sale that Mahindra has done to Ontario Pension Fund?

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1 week ago
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Ontario Teachers’ Pension Fund, a kind of pension fund based out of Canada, plans to buy 30% stake in Mahindra Susten for Rs2,371 crore. Ontario Teachers’ Pension has been quite active in the Indian market, especially in buying up selected equity properties from a long term perspective. Mahindra Susten, represents the sustainable energy business platform of Mahindra group with most of its renewable energy assets to be housed under a single header for better value creation and sum of parts valuation.

As a first step, Mahindra group will first transfer all the identifiable renewable power assets to an INVIT wherein Avendus Capital will act as the financial advisor to the Mahindra Group. Mahindra Group will receive Rs1,300 crore inflow in this deal. Ontario will deploy an additional amount of Rs3,550 crore into the business to scale it up and take it to the next level of growth. Mahindra Susten also has a renewable EPC (erection, procurement, construction) business, an IPP business as well as solar footprint across India.

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