- Gaia Renewables 1 Limited (Gaia) with purchase wind and solar plant interests from IDEAS Renewable 1 GP Proprietary Limited.
The assets which will be acquired from the IDEAS Fund include three equity investments in renewable energy projects (the “Projects”) participating in the Government of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (“REIPPPP”) , namely:
- a 21% interest in the Jeffreys Bay Wind Farm, a 138 MW wind farm located in Jeffreys Bay in the Eastern Cape;
- a 10% interest in the Kalkbult Solar Plant, a 72.5 MW solar photo-voltaic plant located in Hopetown in the Northern Cape; and
- a 10% interest in the Linde Solar Plant, a 36.8 MW solar photo-voltaic plant located in Colesberg in the Northern Cape.
The aggregate purchase price for the assets will be in excess of c. ZAR 700 million (final price subject to adjustments until closing) with the Company believing the Projects together with the current investment in the 95 MW Tsitsikamma Community Wind Farm, will provide investors with a diversified source of inflation linked returns.
The transaction will witness the Gaia raising funding via the issuance of A preference Shares (“Initial Equity Contribution”) which together with debt funding (“Initial Debt Funding”) will be utilised to acquire certain assets from the IDEAS Fund which is managed by African Infrastructure Investment Managers (“AIIM”).
In addition to the Initial Equity Contribution, the Company will look to issue additional A Preference Shares over the course of the next 12 months to reduce the Initial Debt Funding and allow the company to conclude additional transactions.
The transaction remains subject to the fulfilment of several conditions precedent. The Company will provide an update to Shareholders as and when these conditions have been satisfied.
Shareholders are advised that the transaction may have a material effect on the price of the Company’s securities.
Author: Bryan Groenendaal
