News

Continuum said to be in talks to raise funds to complete projects

Continuum Wind Energy Ltd has started initial talks to raise funds through a stake sale or by selling some of its assets, three people aware of the company’s plan said.

The Singapore-based company will use the funds to complete its planned projects in India, they said, declining to be identified.

Continuum held talks with potential financial investors including a Canadian pension fund and Dutch pension fund manager APG Asset Management for the stake sale, they said.

The growth plan of the firm, which has over 1 gigawatt (GW) of wind power projects across six states in the pipeline, took a hit last year when SunEdison Inc., the world’s largest renewable energy firm, backed out of a deal to buy it, citing a liquidity crunch and cost cuts after a series of big acquisitions.

The discussions are at an early stage and the company is exploring all options, including equity stake sale to financial investors or sale of operational assets to strategic investors, the three people cited above said.

Continuum is controlled by Morgan Stanley Infrastructure (MSI), an infrastructure-focused private equity fund.

SunEdison had said in June 2015 that it would acquire Continuum Wind for an undisclosed amount.

An Economic Times report at that time had estimated the deal to be in the range of Rs.3,700 crore-Rs.