Mumbai (Maharashtra) [India], October 13 (ANI): Reliance New Energy Solar Limited (RNESL), a wholly-owned subsidiary of the company, has entered into an agreement with NexWafe GmbH (NexWafe), a German company, for acquiring 86,887 series C preferred shares of the face value of EUR 1 each of NexWafe at a price of EUR 287.73 per share aggregating EUR 25 million.

RNESL will also be issued 36,201 warrants which are exercisable for a consideration of EUR 1 per warrant subject to achievement of agreed milestones, Reliance Industries Ltd (RIL) informed in a letter issued to BSE Limited and National Stock Exchange of India Limited on Tuesday.

According to the letter, the transaction is proposed to be completed by end of October 2021.

NexWafe is developing and producing monocrystalline silicon wafers grown directly from inexpensive raw materials, going directly from the gas phase to finished wafers, obviating the need for costly and energy-intensive intermediate steps such as polysilicon production and ingot pulling on which traditional wafer manufacturing relies upon.

NexWafe uses in-line manufacturing, both for the formation of an initial release layer as well as for epitaxial deposition of silicon in an atmospheric chemical vapour deposition process. NexWafe's unique patented technology is expected to cut wafer production costs, making solar photovoltaics the lowest-cost form of renewable energy available.

In the letter, RIL informed that the acquisition is not a related party transaction and none of the promoter/promoter group/group companies has any interest in NexWafe.

The investment by RNESL will accelerate product and technology development for NexWafe, including completion of the commercial development of NexWafe's solar photovoltaics products on prototype lines in Freiburg, the letter read.

RNESL and NexWafe have also entered into an India Strategic Partnership Agreement providing for joint technology development and commercialization, at scale, of high efficiency monocrystalline "green solar wafers".

"RNESL, under the aforesaid India Strategic Partnership Agreement, will secure access to NexWafe's proprietary technology and plans to build large-scale wafer manufacturing facilities in India using the NexWafe processes and technology," the letter said.

NexWafe is a limited liability company incorporated in Germany on May 18, 2015, registered with the commercial register at the local court of Freiburg, Germany. The turnover of NexWafe for FY 2020, FY 2019 and FY 2018 were EUR 141,899, EUR 157,163 and EUR 132,519, respectively.

The aforesaid transactions will not require any government or regulatory approval, the letter said.

In a statement issued by NexWafe on Tuesday, "Reliance`s investment in NexWafe further underscores its goal of making India the world's leading green energy provider by leapfrogging existing technology, thus creating the world's most cost- and energy-efficient photovoltaic process at scale."Chairman of Reliance Industries Limited Mukesh Ambani, said, "We at Reliance have always believed in being ahead of the technology curve in all our businesses. Our partnership with NexWafe testifies to this yet again, as we embark on an ambitious mission to meet the affordable green energy needs of India's rapidly growing economy. Our investment in NexWafe signals an important step towards accelerating India's green energy transition and positioning India as a global leader in photovoltaic manufacturing. We believe NexWafe's innovative ultra-thin wafer will give solar manufacturers a significant advantage over existing photovoltaic technologies, helping consumers in India and globally realize the benefits of solar energy more quickly and more efficiently.""For Reliance, our foray into solar and other types of renewable energy is much more than a business opportunity. It is our way of caring for Planet Earth and contributing to the global mission of saving it from the looming climate crisis," he added.

Davor Sutija, CEO of NexWafe, said, "With its strategic partnership with NexWafe, Reliance can bring the latest in solar wafer innovation to India while also levelling the global playing field for photovoltaic manufacturers, expanding manufacturing beyond a single source market."Other investors joining Reliance in the Series C Round include InnoEnergy, Lynwood, Saudi Aramco Energy Ventures and other incumbent and new investors, adding another nearly EUR 10 million ($12 million) to the round. Additionally, InnoEnergy will also convert its current debt of EUR 4 million ($4.7 million) in NexWafe into equity at the same share price as the Series C Round shares, the statement said.

"ACXIT Capital Partners is acting as the exclusive financial advisor to NexWafe. International law firms GORG and Raeder are acting as legal counsel to the company. Linklaters acted as the legal advisor and Deloitte as the accounting and tax advisor to Reliance on this transaction," it added. (ANI)