SCATEC SELLS ITS SHARES IN UPINGTON SOLAR PLANT TO STANLIB UNIT FOR NEARLY R1BN

SCATATEC, a renewable energy company in emerging markets, said yesterday that it had agreed to sell its 42% equity stake in the 258MW Upington solar power plant to a subsidiary of Stanlib Infrastructure Fund II, managed by Stanlib Asset Management, for R979 million. Norfund is also selling its 18% equity share to Stanlib as part of the same transaction. The deal is expected to close in the first half of this year. The Upington solar power complex is estimated to deliver an annual production of 650GWh, providing clean energy to around 120 000 households and lead to the abatement of more than 600 000 tons of CO2 emissions annually. Scatec chief executive Terje Pilskog said yesterday: “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. “We are very pleased to secure a value accretive transaction and are confident that Stanlib will be a solid owner of the asset going forward.” Scatec will continue to provide operations and maintenance and Asset Management services to the Upington power plant. Scatec said this transaction did not indicate an exit for Scatec, but a strengthening of its local and regional position. “With the capital raised, we will further drive our ambitions and projects in South Africa – and the broader region,” said Jan Fourie, Scatec executive vice-president, sub-Saharan Africa.