BASF India has approved the acquisition of a 14.18% stake in Clean Max Galapagos Private Limited, a Special Purpose Vehicle, for an amount not exceeding INR 9.45 million. This strategic move aims to procure approximately 4,240 MWh of renewable solar power annually for its Navi Mumbai manufacturing site under a group captive power generation mechanism. The transaction is subject to definitive agreements and requisite approvals.
Strategic Renewable Energy Investment
BASF India Limited’s Board of Directors has given its approval for a significant investment in the renewable energy sector. The company will acquire a 14.18% equity stake in Clean Max Galapagos Private Limited, a Special Purpose Vehicle established by Clean Max Enviro Energy Solutions Limited. This acquisition is set to enhance BASF India’s commitment to sustainability and operational efficiency.
Securing Green Power Supply
The investment, not exceeding INR 9.45 million, is primarily for the procurement of approximately 4,240 MWh of renewable solar power per year. This power will be utilized at BASF India’s manufacturing facility in Navi Mumbai, operating under a group captive power generation mechanism. This initiative aligns with the prevailing renewable energy policies of Maharashtra and the Electricity Act 2003, ensuring a stable and green energy supply.
Transaction Details and Conditions
The closing of this transaction is contingent upon the signing of Definitive Agreements, including a Shareholders’ Agreement and a 25-year long-term Power Purchase Agreement. Receipt of necessary approvals and the fulfillment of other specified conditions are also required. BASF India has confirmed that this acquisition is not a related party transaction, and no promoter or promoter group companies hold any interest in the acquired entity.
Source: BSE
