**Orix Corp. to Reenter Share Transfer Agreement with Greenko Energy**
Japan’s financial services firm Orix Corp. announced on Monday its decision to reenter a share transfer agreement to sell its 17.5% stake in Greenko Energy Holdings to AM Green Power B.V. This transaction is poised to be one of the largest in India’s green energy sector.
In a statement, Orix revealed that the decisions made on Sunday also included reengaging in an investment in the convertible note issued by AM Green B.V., which is owned by Greenko Group founders Anil Chalamalasetty and Mahesh Kolli. The deal is part of Orix’s capital recycling strategy, valuing Greenko Energy at approximately $7.5 billion.
According to reports, the $1.4 billion deal was expected to be announced on Monday. Under the agreement, Orix will receive $650 million in cash and $750 million in stock, translating to a 10% stake in AM Green through convertible notes. Chalamalasetty and Kolli will retain the remaining 90% stake in AM Green. A private credit debt of $650 million has been secured for this transaction.
Orix anticipates recording a gain of around ¥93.4 billion ($647.58 million) in its consolidated financial statements for the second quarter of the fiscal year ending March 31, 2026, based on the sale price estimated using the exchange rate as of June 27, 2025.
AM Green B.V. has a call option on the remaining 2.5% stake that Orix holds in Greenko Energy Holdings for 18 months, with plans to acquire that portion valued at approximately $150 million, according to a source familiar with the matter.
Once the transaction is finalized, Chalamalasetty and Kolli will collectively hold a 28% stake in Hyderabad-based Greenko Energy, while sovereign wealth funds GIC Holdings Pte. Ltd. and Abu Dhabi Investment Authority (ADIA) will hold 58% and 14%, respectively.
Greenko boasts a 12 gigawatt (GW) operational portfolio encompassing wind, solar, hydro, and pumped storage projects, with an additional 20 GW currently under construction. The company is also exploring new business avenues, including nuclear power, and is involved in developing India’s largest electrolyzer plant with John Cockerill in Kakinada.
Orix has been a supporter of Greenko’s growth since its initial investment in March 2021. The decision to sell 17.5% of its 20% stake in Greenko and invest in AMG Lux aligns with Orix’s strategy to focus on the next generation of the energy sector, including green molecules, as the world shifts towards sustainable energy solutions.
**FAQ**
*What is the significance of Orix Corp.’s stake sale in Greenko Energy?*
Orix Corp.’s stake sale in Greenko Energy is significant as it represents a major transaction in India’s green energy market, reflecting the growing interest and investment in sustainable energy solutions.