Japan's Orix to Sell Stake in Greenko to AM Green

As per the deal, Orix gets $650 million in cash, plus $750 million worth of stock, amounting to 10% in AM Green

- Utpal Bhaskar

M Green B.V., owned by Greenko Group founders Anil Chalamalasetty and Mahesh Kolli, on Monday said it had signed definitive documents to acquire a 17.5% equity stake in Greenko Energy Holdings from Japan's financial services firm Orix Corp., in what will be among the largest transactions in India's green energy space.

As part of this deal, which is expected to close by July, Orix has also entered into an agreement to invest in a convertible note issued by AM Green (Luxembourg) S.à.r.l. The deal is part of Orix's capital recycling strategy, and it values Greenko Energy at $7.5 billion.