Scatec, a renewable energy company in emerging markets, said yesterday it had agreed to sell its 42% equity stake in the 258 MW Upington solar power plant to a subsidiary of Stanlib Infrastructure Fund II, managed by Stanlib Asset Management, for R979 million.
Norfund is also selling its 18% equity share to Stanlib as part of the same transaction. The deal is expected to close in the first half of 2023.
The Upington solar power complex is estimated to deliver an annual production of 650 GWh, providing clean energy to around 120 000 households and lead to the abatement of more than 600000 tonnes of CO² emissions annually.
Scatec CEO Terje Pilskog said, “Today’s transaction is in line with our strategy to optimise our portfolio as presented at our Capital Markets Update in September 2022 and will release capital for new investments in renewable energy. We are very pleased to secure a value accretive transaction and are confident that Stanlib will be a solid owner of the asset going forward,.”
Scatec will continue to provide operations and maintenance and Asset Management services to the Upington power plant.
Scatec said this transaction did not indicate an exit for Scatec, but a strengthening of its local and regional position.
“With the capital raised, we will be able to support and further drive our ambitions and projects in South Africa – and the broader sub-Saharan Africa region," said Jan Fourie, Scatec executive vice-president, sub-Saharan Africa.
BUSINESS REPORT