The Aditya Birla Group (Aditya Birla Management Corporation Private Limited) and private equity firm KKR & Co. Inc. (NYSE:KKR) are in a two-horse race to acquire Sprng Energy Private Limited from oil giant Shell plc (LSE:SHEL) after binding financial bids were submitted by four contenders interested in acquiring the renewable energy company on May 2, according to people aware of the matter. Having emerged as the two highest bidders, Shell's management will start negotiations with Aditya Birla and KKR by next week after two internal committees at the London-headquartered company complete their screening process, they said.
India's National Investment and Infrastructure Fund (NIIF) and private equity firm Actis, which had also submitted binding financial bids, are no longer in the reckoning, as per the people cited. The acquisition could be pegged at an enterprise value of about $2,000 million, they said. Sprng Energy has a renewable energy generation portfolio of 5 gigawatts and its output is contracted to reliable counterparties such as state-owned entities in India.
The company was incubated by Actis, which sold it to Shell in 2022. "Shell confirms we are reviewing strategic options to unlock long-term value for Sprng," a company spokesperson said. Aditya Birla's spokesperson was unavailable for comment.
KKR declined to comment. The sale plans are the result of a strategic rethink at the oil company whose shareholders are said to be nudging it to focus more on the core business of exploration and production. ET was first to report on October 8 last year that Shell had engaged investment bank Barclays to advise on the sale of Sprng Energy.
