Brookfield nears deal for Mahindra’s EPC biz, solar units
Canada’s Brookfield Asset Management Inc. has signed an exclusivity agreement to buy Mahindra Susten’s engineering, procurement and construction (EPC) business, besides 1,200 megawatts (MW) of solar assets, at an enterprise value of around ₹5,000 crore, two people aware of the development said.
About half these solar assets are currently under construction, the people cited above said, requesting anonymity. The enterprise value of a firm is calculated on the basis of market capitalization, debt and cash reserves.
Mahindra Susten was earlier running two separate programmes to divest its assets—one comprising the sale of 600MW under-construction solar projects and the EPC business that was managed by EY. Rothschild was handling a separate sale of its operational 600MW solar assets.
“Now, it is all one deal and Brookfield has got exclusivity on it,” said one of the two people cited above.
Spokespersons for Mahindra Susten, Brookfield Asset Management and EY declined to comment. An external spokesperson for Rothschild, in an emailed response, said, “Rothschild has no comment to offer with regards to this market speculation.”
Mahindra Susten’s plans underscore those of its parent Mahindra and Mahindra Ltd, which has unveiled a wide range of steps to unlock value in its units by bringing in new investors.
Mahindra Susten, which builds and sells solar power projects, offers diversified services in the renewable energy and cleantech space.
