Scatec, Norfund offload passion in 258-MW solar park in S Africa

Feb 2, 2023 11:44 AM ET
  • Norway's Scatec ASA (OSL: SSO) and Norfund are marketing a combined 50% stake in the 258-MW Upington solar park in South Africa to a fund managed by STANLIB Asset Management Pty Ltd
Scatec, Norfund offload passion in 258-MW solar park in S Africa
Image: Scatec ASA

The Oslo-based renewables firm revealed in a press statement on Thursday the signing of a deal to sell its 42% equity stake in the particular solar plant to a subsidiary of STANLIB Infrastructure Fund II for a gross consideration of ZAR 979 million (USD 57.3 m/EUR 52.1 m).

As part of the same deal, Norfund is offering its own 18% too. Closing is seen to happen in the initial fifty percent of 2023.

The solar park in Upington, the Northern Cape province, ended up being totally functional in 2020 when its 3rd phase was finished. The complex succeeded in the 4th bidding round of the nation's Renewable Energy Independent Power Producer Programme.

"Today's transaction is in line with our technique to optimise our portfolio as provided at our Capital Markets Update in September 2022 and will certainly release capital for new investments in renewable energy," commented Terje Pilskog, CEO of Scatec. He included that South Africa remains to be an emphasis market for the company.

Scatec estimates that the transaction will generate a net accounting gain of about NOK 760 million (USD 76.3 m/EUR 69.5 m) on a consolidated basis and NOK 310 million on a proportionate basis.

STANLIB is the 2nd largest asset supervisor in South Africa by assets under management as well as becomes part of Standard Bank Group Ltd

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