- Norfund and Mahlako Energy Fund acquire combined 15 percent stake in Anthem, with option to increase to 30 percent.
- R1.5 billion equity investment positions Anthem among South Africa largest independent power producers.
- Competition Commission recommends approval of both transactions without conditions.
The Norwegian Investment Fund for Developing Countries, Norfund, together with Mahlako Energy Fund, has acquired a strategic minority stake in Anthem Group Holdings.
Norfund and Mahlako together will hold an initial 15 percent stake, with the potential to increase their shareholding to 30 percent over time. Norfund investment is valued at approximately R1.5 billion, equivalent to 86 million US dollars, and will be deployed primarily through its Climate Investment Fund.
Anthem was formed through the merger of African Clean Energy Developments and EIMS Africa, both majority owned by Old Mutual through the IDEAS Fund. At launch, the company brings together a portfolio exceeding 2.7 gigawatts of wind, solar and hydro projects, positioning it among the largest independent power producers in South Africa with an estimated 12 to 15 percent share of the market.
The Competition Commission has recommended that the Competition Tribunal approve both transactions without conditions. The Commission found that the proposed acquisitions are unlikely to substantially lessen or prevent competition in any relevant market and do not raise significant public interest concerns.
Norfund is a state owned investment fund established by the Norwegian Parliament and wholly controlled by the Norwegian Government through the Ministry of Foreign Affairs. In South Africa, Norfund has stakes in H1 Capital, Globeleq Energy Trading and Globeleq Southern Africa Bess Holdings. Collectively known as the Norfund Group, the entity holds a diversified renewable energy portfolio across wind, solar and hydro assets.
The majority of Norfund Group assets in South Africa are classified as public off-taker projects under the Renewable Energy Independent Power Producer Procurement Programme. The group also maintains a smaller portfolio of private off-taker renewable energy assets.
Anthem operates as an independent power producer under the Renewable Energy Independent Power Producer Procurement Programme, supplying electricity generated from solar photovoltaic and wind projects to Eskom. In addition, the company participates in the private commercial and industrial market, delivering power to large users, energy traders and aggregators.
Mahlako Energy Fund, a 100 percent black women owned investment and advisory firm, participates in the renewable energy market through development, investment and advisory activities across solar photovoltaic and concentrated solar power technologies. The Mahlako Group is active in both public procurement under the Renewable Energy Independent Power Producer Procurement Programme and private off-taker arrangements.
Author: Bryan Groenendaal
