Canada Pension Plan Investment Board is exploring buying the shares of ReNew Energy Global that it doesn't already own and taking the Nasdaq-listed firm private, according to people with knowledge of the matter.
The asset manager is in talks with advisers to weigh a tender offer, according to the people, who asked not to be identified discussing confidential information. CPPIB holds a majority stake in ReNew Energy, the people said, adding that talks are ongoing and no final decision has been reached.
Delisting of the Gurugram, India-based power producer, with a market capitalization of more than $2 billion as of Friday, will give CPPIB greater control over the firm that competes with deep-pocketed rivals. India presents a massive opportunity for clean energy developers as it aims to almost triple non-fossil fuel power capacity to 500 gigawatts by 2030.
A spokesperson for CPPIB said the company will not comment on market speculation, while ReNew's spokesperson declined to comment.
ReNew Energy Global Plc Class A shares rose more than 13%, the most in at least two years, on Friday after Bloomberg News reported CPPIB's plan to take it private. The stock had dropped to a record low earlier this month.
CPPIB bought $268 million worth of ReNew shares from Goldman Sachs this month, giving the Canadian firm a stake of 51.6%, according to the Business Standard newspaper. ReNew's other backers include Abu Dhabi Investment Authority, according to data compiled by Bloomberg.