Scatec ASA has signed an agreement with Greenstreet 1 Proprietary limited to sell part of its ownership in the Kalkbult, Linde, and Dreunberg solar power plants, with a total capacity of 190 MW, for a gross consideration of ZAR 921 million ($50 million).
Scatec currently holds an economic interest of approximately 46 percent in the Kalkbult and 44 percent in the Linde and Dreunberg solar power plants. The transaction will be conducted through a two-step process, whereby Scatec will sell down to approximately 13 percent in Kalkbult and 12 percent in Linde and Dreunberg.
Scatec remains committed to long term investment in South Africa and will continue to provide Operations & Maintenance and Asset Management services to the three facilities, which were won under Rounds 1 and 2 of South Africa’s REIPPP Program.
“This transaction signifies continued implementation of our strategy to recycle capital into new investments in renewable energy. We are very pleased to secure a value accretive transaction and are confident that STANLIB, who has been invested in the assets since inception, will be a solid majority owner of the asset going forward,” says Scatec CEO Terje Pilskog.
“Having been in South Africa for over a decade, we have grown into a leading renewable energy player in the country. South Africa will continue to remain a core growth market for us, and we will continue to build scale through new investments, including the Grootfontein solar projects under construction, the Mogobe battery storage project, and through Lyra Energy, our private sector focused vehicle,” adds Pilskog.
The first phase of the transaction is estimated to close in the second half of 2024 and the second phase in the first half of 2025. Closing of the transaction is subject to customary consents including lender, shareholder, and regulatory authority approvals. The accounting effects will be disclosed at closing of the transaction.
Greenstreet 1 Proprietary is a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB Asset Management Proprietary Limited.