Polestar advised a Foreign Investor in acquiring a stake in a 56MW distressed hydropower generation company from a leading US-based Hedge Fund for US$ 15.0 million.

Information on the Target

The target of this deal is a 56MW hydropower generation company that has encountered significant challenges due to ongoing litigation involving its previous investors. This company plays a crucial role in the renewable energy sector, contributing to sustainable power generation. Despite its operational potential, the ongoing disputes have adversely affected its valuation and operational stability.

The acquisition was facilitated by Polestar, acting as the Sole Advisor to a Foreign Investor, which recognized the opportunity to invest in a distressed asset with considerable upside potential should the legal complexities be resolved. The backing of the company’s operational capabilities and the growth of the hydropower sector makes it a strategically sound investment.

Industry Overview in the Target’s Specific Country

The hydropower sector has been a cornerstone of the renewable energy landscape, especially in countries heavily invested in sustainable energy solutions. The energy demand continues to rise while the ne