Orix Corporation terminates Greenko Energy deal, cancels sale

Orix Corporation (TSE:8591) announced the termination of its agreement to sell its shares of Greenko Energy Holdings to AM Green Power B.V., a subsidiary of AM Green B.V., initially announced on January 20, 2025. The agreement also included Orix's investment in convertible notes issued by AM Green (Luxembourg) S.à.r.l. The termination is due to the non-fulfillment of conditions precedent, primarily related to the transferee's financing. While the Indian Competition Act approval was obtained on March 11, 2025, the transferee failed to secure necessary financing agreements by the agreed-upon deadline, leading to the termination. Orix had previously adjusted the expected execution date of the transaction, as announced on April 1, 2025. Despite the deal's collapse, Greenko's operations remain healthy, and Orix will continue to support its growth as a shareholder and explore future investment strategies. Consequently, Orix will no longer book the gain from the sale in fiscal year 2026 which was initially announced on April 1, 2025. The company will provide consolidated earnings forecasts for fiscal year 2026 with its fiscal year 2025 financial release. Orix remains committed to expanding its renewable energy business.