**AM Green Stake Sale Expected to Finalize Soon**
The anticipated stake sale in AM Green (Luxembourg) S.à r.l. is expected to wrap up within a month, according to sources who requested anonymity. AM Green, which is owned by Greenko Group founders Anil Chalamalasetty and Mahesh Kolli, plans to allocate a portion of the proceeds to repay a $650 million private credit facility. This loan was utilized to acquire a 17.5% stake in Greenko Energy Holdings from Japan’s Orix Corp, a transaction that valued the Hyderabad-based Greenko at $7.5 billion. The remaining funds will be invested in AM Green’s bio-fuel, aluminum, and ammonia projects, which are part of its ambitious $20 billion capital expenditure strategy.
Additionally, Japan’s Mitsui & Co. is conducting due diligence for a potential stake in AM Green at the holding company level and has signed a memorandum of understanding (MoU) for strategic collaboration on energy transition initiatives and investment opportunities. According to a joint statement released on December 18, the MoU outlines that both parties will explore potential investments in the AM Green Metals value chain.
The proposed deal with Stonepeak mirrors the terms offered to Mitsui, as reported by one of the sources. Mint initially covered AM Green’s transaction with Greenko in 2025, where Orix received $650 million in cash and $750 million in stock through convertible notes, equating to a 10% stake. Chalamalasetty and Kolli retain the remaining 90% of AM Green and hold approximately 25% of Greenko Energy through their personal investments and AM Green’s stake.
In terms of capital expenditure, AM Green’s subsidiary, AM Green Aluminium Metals and Materials, is developing a primary aluminum smelter with a capacity of 1 million tonnes per annum (mtpa), alongside 2 mtpa of alumina refining and mining operations. This initiative comes in response to several developed economies implementing carbon taxes on imports and enforcing stricter compliance regulations. Furthermore, AM Green is establishing production facilities for green molecules, including green hydrogen, green ammonia, biofuels, e-methanol, sustainable aviation fuels, and various high-value chemicals aimed at decarbonizing hard-to-abate industries.
Stonepeak is no stranger to India’s green energy sector, having previously invested in renewable energy projects and being shortlisted to submit a binding offer for the acquisition of European alternative asset manager EQT and Singapore’s Temasek-owned O2 Power, a renewable energy platform in India. This deal had equity and enterprise values of approximately $1 billion and $2.3 billion, respectively. With around $80 billion in assets under management, Stonepeak focuses on infrastructure and real assets.
**FAQ**
**What is the purpose of the stake sale in AM Green?**
The stake sale aims to raise funds to repay a $650 million private credit facility and to finance various projects in bio-fuel, aluminum, and ammonia as part of AM Green’s $20 billion capital expenditure strategy.
