Scatec Completes Sale of Ownership Stakes in South African Solar Plants to STANLIB

Scatec ASA, a global renewable energy leader, has finalized the second and final phase of its previously announced sale of ownership stakes in the Kalkbult, Linde, and Dreunberg solar power plants to Greenstreet 1 Proprietary Limited, a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB Asset Management Proprietary Limited.

In this phase, Scatec received gross proceeds of ZAR 433 million (USD 24 million), bringing the total proceeds from the sale to ZAR 921 million (USD 51 million). The transaction values the enterprise at approximately ZAR 1.86 billion (USD 103 million), with an enterprise value per megawatt of USD 1.6 million. At the end of Q2 2024, the net interest-bearing debt associated with the power plants was ZAR 939 million (USD 52 million).

Following the transaction, Scatec retains an economic interest of approximately 13% in Kalkbult and 12% in Linde and Dreunberg. The accounting gain from the second phase of the sale is estimated at ZAR 0.6 billion (NOK 0.4 billion), to be recognized in Q4 2024. Including the gains recorded in Q3 2024, the transaction has generated a total consolidated accounting gain of about ZAR 2.4 billion (NOK 1.5 billion) and a proportionate gain of ZAR 1.2 billion (NOK 0.8 billion).

As part of the agreement, Scatec has the option to repurchase the sold shares for a nominal sum of ZAR 1 in 2034, upon the expiry of the Power Purchase Agreements (PPAs). Exercising this option would increase Scatec’s ownership to approximately 31% in Kalkbult and 28% in Linde and Dreunberg.

Scatec will continue to provide Operations & Maintenance (O&M) and Asset Management services for the three solar plants, ensuring ongoing operational excellence.”This transaction signifies continued implementation of our strategy to reinvest capital into new renewable energy projects. We are very pleased to have closed this value accretive transaction and are confident that STANLIB, who has been invested in the assets since inception, will be a solid majority owner of the asset. South Africa remains one of our core markets and we will continue supporting the country’s energy transition through further investments within renewable energy,” said Scatec CEO Terje Pilskog.