New Delhi, June 30 -- Japanese financial services firm Orix Corp said on Monday that it plans to re-enter an agreement to sell a 17.5% stake in Greenko Energy Holdings, backed by GIC, to AM Green Power BV, which is controlled by Greenko founders Anil Chalamasetty and Mahesh Kolli. The deal is expected to be valued at $1.28 billion (Rs 10,900 crore).
Tokyo-based Orix said it will transfer 17.5% of its 20% holding in Greenko to AM Green. It will also invest $731 million in a convertible note issued by AM Green's Luxembourg-based parent company.
In January, Orix had agreed to offload its entire stake in Greenko, but the deal was terminated in April as the buyers failed to reach an agreement on financing arrangements with their funding partners, the company had said.
"ORIX had announced in January 2025 that it had entered into a share transfer agreement of Greenko and a new investment in AMG Lux, but because the conditions precedent had not been satisfied, the agreement had been terminated in April 2025. However, after further consideration among related parties, we have decided to re-enter this agreement," the company said in its Monday release.
According to reports, the deal will provide Orix with $650 million in cash and $750 million in stock, translating into a 10% stake in AM Green. The remaining 90% of AM Green will be retained by Greenko founders, Mint reported..
"If the sale price is estimated using the exchange rate as of June 27, 2025, ($1 = Euro144.58), ORIX expects to record a gain on the sale of approximately Euro93.4 billion (including the valuation gain on the 2.5% stake which we will continue to hold) in the consolidated financial statements in the second quarter for the fiscal year ending March 31, 2026," Orix said in its statement.
Singapore's GIC owns a majority 58% stake in Greenko, while the Abu Dhabi Investment Authority (ADIA) holds 14%. Following the deal with Orix, the founders are expected to hold a combined 28% stake in Greenko via AM Green and in their personal capacities.
The deal follows AM Green's acquisition of Finnish biorefining company Chempolis Oy and Fortum's Bio2X biosolutions business around nine months ago.
Published by HT Digital Content Services with permission from VC Circle.