Chubu Electric Power is in advanced talks to buy a stake in India’s Continuum Green Energy at a valuation of at least $1 billion, according to people familiar with the matter.
The Japanese power developer is nearing a deal to buy about $150 million to $200 million of new shares in Continuum, the people said, asking not to be identified because the information isn’t public. That would amount to a stake of about 15% in the renewable energy company, one of the people said.
A deal could be signed before the end of May, another person said. Discussions are ongoing and no final decision has been made, the people said, adding that Mumbai-based Continuum might decide against a stake sale.
A spokesperson for Chubu Electric said nothing has been decided. Continuum didn’t respond to requests for comments.
Continuum was planning for an initial public offering last year after British specialist investment fund Just Climate agreed to invest $150 million in 2024. The current regulatory approval for the IPO will lapse in April, and Continuum has paused its plans for it, the people familiar said.
Founded in 2009, Continuum supplies green power to commercial and industrial consumers and owns a portfolio of 4.7 gigawatts, including operational and under construction, its website shows.
If the Chubu Electric deal goes through, Continuum will use the funds for small acquisitions and to grow organically, one of the people said.