New Delhi, Dec. 16 -- Abu Dhabi Future Energy Company PJSC, which operates as Masdar, has pulled out of the consortium that had proposed to take Nasdaq-listed Indian green energy company ReNew Energy Global Plc private.
This has led to the collapse of the move to delist the company from the US stock market. Masdar's move to withdraw its nearly $1 billion cash offer triggered a 27% slump in ReNew's share price on Monday from $7.55 previously to $5.50 apiece at close, giving it a market value of about $2 billion.
Masdar informed the other consortium members-the Canada Pension Plan Investment Board (CPPIB), which is ReNew's majority owner, as well as the Abu Dhabi Investment Authority (ADIA)-on Monday that it has pulled out of the group, effectively ending the proposed transaction.
"As a result (of Masdar's withdrawal), the consortium will no longer proceed with the proposed transaction to acquire the entire issued or to be issued share capital of ReNew, not already owned by the members of the consortium," ReNew said in a filing with the US Securities and Exchange Commission (SEC).
The filing didn't specify Masdar's reasons for withdrawing from the consortium.
"The special committee is disappointed that Masdar has withdrawn from the consortium, which has resulted in all discussions on the proposed transaction being terminated," ReNew said in its filing.
"This decision follows a long period of engagement between the special committee, its advisers and the consortium, during which material and comprehensive due diligence was completed, the proposed offer price increased from $7.07 in cash per share, as announced on 11 December 2024, to a best and final offer of $8.15 in cash per share on 14 October 2025. Significant progress on the transaction agreement had been achieved, as confirmed by the consortium in the announcement issued by ReNew on 1 December 2025," it said.
Masdar's decision is a setback for ReNew's shareholders, who were looking for an exit opportunity after the consortium announced in October that it had agreed in principle to taking the company private at a cash buyout at $8.15 per share. Around the same time, VCCircle reported that the company might look to rework its plan to list its business in India, as its delisting plan in the US had been dragging on.
It is not yet clear whether another potential investor will replace Masdar on the cap table.
Masdar pulled out of the consortium nearly a year after the company first announced its plan to delist from the US in December last year. This came weeks after VCCircle first reported that the company was weighing a plan to delist from the US market and list in India, where its operating businesses are based.
The consortium had initially offered to buy ReNew's shares at $7.07 apiece. It revised its proposal in July to $8.00 after ReNew's shares rose above the initial offer price, and further to $8.15 later.
CPPIB, ADIA and ReNew founder Sumant Sinha together own 64% of the fully diluted public shares of the company while the UAE government-controlled Masdar was coming in as a new investor in the consortium.
In August this year, The Financial Express reported that the company was indeed planning an initial public offering in India. The report also said that ReNew had picked a group of investment bankers including JM Financial and Goldman Sachs for the proposed IPO. However, VCCircle reported in October that, to begin with, the company may only list its local solar module manufacturing arm and not its entire business in the country.
ReNew Energy's solar module manufacturing business is housed under its unit ReNew Photovoltaics Pvt Ltd. The unit started in 2021. It currently operates a 6.4 GW solar PV module facility in Jaipur, Rajasthan, and a 2.5 GW solar cell facility in Dholera, Gujarat. The unit is also setting up a new 4 GW cell facility in Dholera and raised $100 million from British International Investment (BII) in May to finance the expansion.
ReNew became the first Indian green energy company to list on the Nasdaq after completing a merger with the US-based blank cheque company RMG Acquisition Corp II at an enterprise value of $8 billion. It remains one of the biggest green energy companies in India and competes with the likes of Adani Green Energy, Tata Power's green energy arm and GIC-backed Greenko, which also counts ADIA as an investor.
Published by HT Digital Content Services with permission from VC Circle.