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

Norway’s Scatec ASA (OSL:SSO) and Norfund are selling a combined 50% stake in the 258-MW Upington solar park in South Africa to a fund managed by STANLIB Asset Management Pty Ltd.

The Oslo-based renewables company announced 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 57.3m/EUR 52.1m).

As part of the same transaction, Norfund is selling its own 18% too. Closing is seen to take place in the first half of 2023.

The solar park in Upington, the Northern Cape province, became fully operational in 2020 when its third stage was completed. The complex was successful in the fourth bidding round of the country’s Renewable Energy Independent Power Producer Programme.

“Today’s transaction is in line with our strategy to optimise our portfolio as presented at our Capital Markets Update in September 2022 and will release capital for new investments in renewable energy,” commented Terje Pilskog, CEO of Scatec. He added that South Africa continues to be a focus market for the company.

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

STANLIB is the second largest asset manager in South Africa by assets under management and is part of Standard Bank Group Ltd.

(ZAR 10 = USD 0.585/EUR 0.532)

(NOK 10 = USD 1.004/EUR 0.914)

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