Please ensure Javascript is enabled for purposes of website accessibility

KKR Signs $205 Million Deal for Solar Assets in India

By Eric Volkman – Updated Apr 28, 2020 at 2:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The investment firm wlll acquire 317 megawatts of capacity across two Indian states.

Ever-opportunistic investment firm KKR (KKR -0.69%) is making a new bet on renewable energy. The company announced Monday it has signed definitive agreements to acquire a set of solar energy assets from the SP Infra unit of Indian company Shapoorji Pallonji Infrastructure Capital. The price is 15.54 billion Indian rupees ($205 million).

All told, KKR will be the new owner of five solar assets, with total capacity of 317 megawatts. They are located in the states of Kamil Nadu and Maharashtra, and according to KKR they are fully operational. The company did not provide a wealth of detail about the assets.

Solar panels with a cityscape in the background.

Image source: Getty Images.

In the press release trumpeting the acquisition, KKR did strongly hint that it would continue to be on the lookout for similar assets outside of the borders of its native U.S.

"Given the growing demand across Asia Pacific for sustainable energy solutions, we also see this [acquisition] as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development," the company said. "Looking ahead, we are excited to explore even more renewable energy opportunities in India and overseas."

KKR, formed nearly 50 years ago, continues to be a prominent and well-capitalized buyer and seller of assets across a very wide range of economic sectors and markets. It is perhaps best known as the company that in 1988 effected the buyout of RJR Nabisco, a conglomerate whose component parts have since been absorbed into British America Tobacco and Mondelez International, respectively.

Investors seem pleased with this latest in KKR's long string of deals. They bid the company's stock up by 5.7% on Monday; this well exceeded the gains of the leading market indexes that day. 

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends KKR. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

KKR & Co. Stock Quote
KKR & Co.
KKR
$43.00 (-0.69%) $0.30
Mondelez International, Inc. Stock Quote
Mondelez International, Inc.
MDLZ
$54.83 (-3.25%) $-1.84
British American Tobacco p.l.c. Stock Quote
British American Tobacco p.l.c.
BTI
$35.50 (-1.33%) $0.48

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.