Ontario Teachers’ Pension Fund acquires 30 per cent stake in Mahindra Susten

Ontario Teachers’ Pension Plan will acquire a 30 per cent equity stake in Mahindra Susten, a cleantech arm of Mahindra Group, for an equity value of Rs 23.71 billion ($300 million). The transaction involves the setting up of an InvIT in compliance with applicable regulations of the Securities and Exchange Board of India (SEBI).
Mahindra Susten’s business includes an independent power production (IPP) entity with approximately 1.54 GW of operational solar plants which will be transferred to the InvIT. British Columbia Investments (BCI) and APG Asset Management are among the other global investors interested in a stake in the InvIT. Mahindra Group and Ontario Teachers will jointly explore the sale of an additional 9.99 per cent stake in Mahindra Susten. The shareholder loans amounting to around Rs 5.75 billion ($73 million) advanced by Mahindra Group to Mahindra Susten will be repaid.