Why did Masdar pull out of the ReNew Energy deal?

Masdar's specific reasons for withdrawing were not disclosed, but negotiations had been lengthy and potentially complex with other stakeholders.

What happened to ReNew Energy's stock after Masdar's withdrawal?

ReNew Energy's stock price on the Nasdaq experienced a significant drop of 28% following Masdar's decision to withdraw its offer.

Was the ReNew Energy privatization deal going to be a large cash offer?

Yes, the investor consortium, led by Masdar, had proposed a cash offer of nearly $1 billion to take ReNew Energy Global private.

Home / Business and Economy / Masdar Abandons $1B ReNew Deal, Stocks Plummet

Masdar Abandons $1B ReNew Deal, Stocks Plummet

16 Dec

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Summary

Masdar withdrew its nearly $1 billion offer for ReNew Energy Global.
ReNew's stock price plunged 28% following Masdar's withdrawal.
The deal's termination ends hopes for shareholders seeking an exit.

Masdar Abandons $1B ReNew Deal, Stocks Plummet

Abu Dhabi-based Masdar has officially withdrawn from the investor consortium intending to take ReNew Energy Global private. This move, following the withdrawal of their almost $1 billion cash offer over the weekend, resulted in ReNew's stock price plummeting by 28% on the Nasdaq. Masdar's decision effectively terminates the proposed transaction, dashing hopes for shareholders seeking an exit.

The consortium, which controls nearly two-thirds of ReNew, had recently revised its offer to $8.15 per share, a 15.3% increase from the initial bid. However, Masdar's departure signifies the end of these discussions, despite extensive due diligence by the special committee of ReNew's independent directors. ReNew's chief financial officer confirmed the company has substantial cash reserves and no immediate need for capital.

The failed bid also comes after ReNew announced plans last December to leave the Nasdaq, having experienced a significant market value decline since its 2021 listing. Masdar's withdrawal, described as unexpected by sources, leaves the future of ReNew's privatization uncertain and impacts potential growth capital infusion plans.