Scatec ASA, a prominent renewable energy company focusing on emerging markets, has entered into a deal with Globeleq to divest its 52.5% equity share in the 40 MW Mocuba solar power plant located in Mozambique. The transaction amounts to USD 8.5 million (NOK 85 million) and aligns perfectly with Scatec’s strategic objectives.
Scatec CEO, Terje Pilskog, states, “This transaction aligns perfectly with our portfolio optimization strategy, involving the divestment of smaller assets in non-focus markets. The sale will free up capacity for our priority markets and provide capital for new investments in renewable energy. We are delighted to secure a value accretive transaction and have full confidence that Globeleq will be a reliable custodian of the asset moving forward.”
Globeleq, an independent power producer with a robust presence in Sub-Saharan Africa, boasting over 2.1 GW of power production capacity either operational or under construction, is set to acquire Scatec’s 52.5% equity share in the Mocuba solar power plant. The plant, situated in Mozambique’s Zambézia Province, commenced operations in August 2019 and has an annual production capacity of around 75 GWh. Holding a 25-year Power Purchase Agreement (PPA) with the state-owned utility, EDM, the project’s operations and maintenance, along with asset management services, will be assumed by Globeleq following the transaction.
Expected to generate a net accounting gain of approximately USD 4 million on a consolidated basis and USD 3 million on a proportionate basis, the final accounting effects will be determined upon the transaction’s closing. Subject to customary consents, the deal is slated to conclude in the first half of 2024. Globeleq, with a majority ownership by British International Investment (70%) and Norfund (30%), strengthens its position as a key player in the region’s renewable energy landscape with this strategic acquisition.