Scatec ASA announced that the sale of its 51 percent stake in the African hydropower joint venture with Norfund and British International Investment (BII) is complete, in line with the company’s strategy.
The sales agreement includes the operating 255 MW Bujagali hydropower plant in Uganda, and a development portfolio consisting of the 361 MW Mpatamanga in Malawi and the 206 MW Ruzizi III at the border of Rwanda, DRC, and Burundi. As part of the transaction, the Hydro Africa team will be transferred to TotalEnergies in an entity incorporated as SN Power AS.
“We are pleased with closing the transaction to sell our stake in the African hydropower assets to TotalEnergies. The divestment is in line with our strategy to optimize our portfolio and focus the majority of our investments in our core markets and on solar, onshore wind and battery energy storage. We are confident that TotalEnergies will be a strong owner going forward. I would especially like to thank the hydropower team that now moves to TotalEnergies for their hard work and dedication over the years,” says Scatec CEO Terje Pilskog.
The transaction closed February 28 at an agreed sales price of $167 million, based on a valuation date of December 31, 2023. The net proceeds from the transaction are estimated at $161 million, adjusted for cash movements between the valuation date and the closing date. The proceeds from the transaction will be used to support Scatec’s self-funded growth plan and for additional debt repayments at corporate level.
The transaction has generated a total proportionate accounting effect of approximately $30 million and consolidated accounting effect of approximately $50 million, to a large extent driven by foreign currency effects, which will be recognized in the first quarter of 2025.