Scatec ASA today closed the previously announced transaction to divest the Upington solar plants in South Africa.
Scatec, a renewable energy company in emerging markets, is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange
The gross consideration for divestment of Scatec’s 42% equity-share in the 258-megawatt (MW) plants is R973 million (NOK 546 million).
The company said as previously communicated the proceeds will be recycled into new investments within renewable energy.
“We are very pleased to secure a value accretive transaction, in line with our strategy to optimise our portfolio and recycle capital. South Africa remains a focus market for us, and we will continue to build scale through new investments in the country. I would like to thank all parties involved in the transaction,” says Scatec CEO Terje Pilskog
The net accounting gain is estimated to be NOK 791 million on a consolidated basis and NOK 348 million on a proportionate basis. The difference is primarily explained by the D&C margin related to the projects which has been eliminated in the consolidated statement of financial positions.
Scatec will continue to provide operations & maintenance (O&M) and asset management services to the plants.
Also read: Stanlib Pays R979 Million To Buy 42% Stake In Scatec’s Upington Solar Plant
Scatec ASA has today signed an agreement with a subsidiary of Stanlib Infrastructure Fund II, managed by Stanlib Asset Management (Stanlib), to sell its 42% equity share in the 258 MW Upington solar power plant for a gross consideration of R 979 million.
The solar plant in Upington reached COD in 2020 and were awarded in the fourth bidding round under the Renewable Energy Independent Power Producer Programme.
The plant generates approximately one third of the proportionate power production EBITDA in South Africa for Scatec. Scatec will continue to provide Operations & Maintenance and Asset Management services to the Upington power plant.
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 600,000 tonnes of CO² emissions annually.
Stanlib is the second largest asset manager (by assets under management) in South Africa, and part of Standard Bank Group.
