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Petronas, Vitol, and Sun Energy in Talks to Acquire Fourth Partner Energy

The majority stake sale is likely to value the company’s equity base at around USD 450-500 million. TPG, which owns close to 50 percent stake in the business, is looking to completely exit the company through this transaction.

October 19, 2023. By News Bureau

Malaysian energy major Petronas, Indonesia’s renewables firm Sun Energy, and global commodities company Vitol are in talks to acquire TPG Capital’s Rise Fund-backed Fourth Partner Energy, a renewables company that supplies green energy to commercial and industrial establishments.

The majority stake sale is likely to value the company’s equity base at around USD 450-500 million. TPG, which owns close to 50 percent stake in the business, is looking to completely exit the company through this transaction.

Petronas owns Amplus Solar in India that has an operating portfolio of 1.5 GW of renewable assets. Vitol owns around 1.2 GW of renewable assets, while Indonesia-based Sun Energy has installed over 280 MW of renewable power capacity for corporate clients. Norfund, a Norway government-sponsored investment fund that invested USD 100 million in the company in 2021, will continue to hold its stake.

Fourth Partner Energy had an operating portfolio of 685 megawatts (MW) as of March 2023 growing from 248 MW as of September 2021, according to a report by credit rating agency Icra.

The operating portfolio is expected to reach 1,358 MW in the near to medium term. Fourth Partner Energy posted revenues of INR 1,018 crore in FY22, up from INR 459 crore in the previous year. It reported a net profit of INR 7 crore in FY22, rising from INR 53 lakh in the previous year.

This acquisition is a significant step towards achieving sustainable energy goals and reducing carbon footprint. It is expected that this partnership will lead to further innovation and technology in the field of renewable energy.

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