ACME Solar abandons plans for solar park developer acquisition
ACME Solar Holdings Ltd, a leading renewable energy company, has announced the termination of its planned acquisition of AK Renewable Infra Pvt Ltd. The deal, worth Rs 79.25 crore ($9 million), was inked in early 2022 but was called off last weekend due to undisclosed risk factors and unforeseen changes in AK Renewable's financial conditions.
AK Renewable, a relatively new player in the renewable energy sector, was founded in 2021. Despite its young age, the company was developing a 300 MW solar project in Rajasthan. However, it did not report any turnover as of FY25.
The terminated deal would have made AK Renewable a wholly-owned subsidiary of ACME Solar. This move could have significantly boosted ACME Solar's operational capacity, which stood at around 2.89 GW as of Q1 FY26.
The news of the terminated deal comes amidst speculation about ACME Solar facing liquidity concerns. It is also reported that ACME Solar Holdings Ltd is planning to sell some of its solar projects.
Meanwhile, ACME Cleantech, another renewable energy firm, has filed for a $335 million IPO. The company aims to use the funds for the expansion of its renewable energy projects and for general corporate purposes.
In a separate development, Canopy Growth Corporation has entered into a definitive agreement to acquire Acreage Holdings Inc. This move is expected to strengthen Canopy Growth's position in the cannabis industry.
Interestingly, the ex-CEO of Cognizant is reportedly raising a PE fund in America. The details of the fund are yet to be disclosed.
As the renewable energy sector continues to grow, these developments highlight the dynamic nature of the industry. The terminated deal between ACME Solar and AK Renewable serves as a reminder of the risks involved in such acquisitions. However, it also opens up opportunities for other players in the market.
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