African power development company Ncondezi Energy Limited has recently announced its renewable energy Ncondezi Green Power Holding Limited (NGP) subsidiary has entered into a sale and purchase agreement (SPA) with Green Energy SPV PLC and sold its Mozambican solar and storage-focused outfit for USD 1.3 million.
The Mozambique Green Power (MGP) is the Ncondezi group’s maiden Commercial and Industrial (C&I) project consisting of 400 kWp solar and 912 kWh battery storage facility in Mozambique.
MGP’s portfolio was tied up in exclusivity agreements with South African investing company Nesa Capital, through which both the companies were seeking to set up a joint venture dedicated to a solar-plus-storage storage facility in the C&I sector of Southern Africa. These agreements were terminated in order to make way for the sale of MGP to Green Energy SPV.
Green Energy is a newly formed company under Scott Fletcher, the Non-Executive Director of Ncondezi Energy Limited. The other Non-Executive Director of Ncondezi Energy, Aman Sachdeva commented, “Following completion of the strategic review process, Green Energy’s offer provides a premium valuation with an easy to execute structure.”
Ncondezi has waived certain contractual rights in relation to Scott Fletcher and the CEO Hanno Pengilly under their letter of appointment and service agreement, respectively, such that both of them are permitted to participate in any C&I solar PV and battery storage projects carried out by Green Energy following completion of the transaction.
The transaction with the buyer was completed and the proceeds from the sale will be used to repay a bridge loan with the remainder of the amount, standing at around USD 0.65 million, will be used for general working capital purposes.
Ncondezi Energy will now be focusing on its main project, the integrated 300-MW coal-based thermal power plant and mine project in the northern region of the country.