- Norwegian IPP Scatec has closed the previously announced transaction to divest the Upington solar plants in South Africa.
- The purchaser is a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB Asset Management Proprietary Limited.
- Norfund is also selling its 18% equity share to STANLIB as part of the same transaction.
The gross consideration for divestment of Scatec’s 42% equity-share in the 258-megawatt (MW) plants is ZAR 973 million (NOK 546 million). 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.
Author: Bryan Groenendaal
