Ncondezi sells Mozambican solar, storage C&I biz

African power development company Ncondezi Energy Ltd (LON:NCCL) has sold its Mozambican solar and storage-focused outfit for USD 1.3 million (EUR 1.15m) in cash, it said.

Mozambique Green Power (MGP), a Ncondezi company that owns a 400-kWp solar and 912-kWh battery storage project for the commercial and industrial (C&I) sector, was sold to Green Energy SPV PLC.

MGP’s portfolio was tied up in exclusivity agreements with Johannesburg-based investor Nesa, through which Ncondezi and Nesa were seeking to set up a joint venture dedicated to solar-plus-storage storage projects in southern Africa's C&I sector. These exclusivity agreements were terminated to make way for the sale of MGP to Green Energy SPV, Ncondezi said.

The transaction with the buyer was closed. Proceeds from the sale will be used to repay a bridge loan, which is due on December 7. The remainder of the amount, standing at some USD 650,000, will be used for general working capital purposes.

“Following completion of the strategic review process, Green Energy's offer provides a premium valuation with an easy to execute structure,” commented Ncondezi non-executive director Aman Sachdeva.

The company can now focus on its main project, the integrated 300-MW coal-based thermal power plant and mine project in northern Mozambique, Sachdeva said.

(USD 1.0 = EUR 0.885)

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