Scatec Completes Sale of Stake in South African Solar Farms to STANLIB

Credit: Scatec ASA

Norwegian renewable energy company Scatec ASA has finalized the second phase of its sale of stakes in three South African farms—Kalkbult, Linde, and Dreunberg—to STANLIB Fund II.

The transaction netted Scatec ZAR 433 million (USD 23.9 million/EUR 22.7 million), reducing its economic interest in Kalkbult to 13% and in Linde and Dreunberg to 12%. STANLIB, which has been a co-owner of these solar projects, acquired the stakes through a subsidiary.

Following the first phase, which concluded in September, Scatec's stakes in the projects were reduced to 31% in Kalkbult and 28% in both Linde and Dreunberg. Prior to the deal, Scatec held 46% in Kalkbult and 44% in Linde and Dreunberg.

The three solar farms, commissioned in 2014, have a combined capacity of 190 MW and operate under 20-year power purchase agreements (PPAs) with Eskom, 's state-owned utility.

Scatec CEO commented: “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.”

Scatec retains an option to repurchase the shares sold in this phase for a symbolic sum of ZAR 1 in 2034, when the PPAs expire. Pilskog further noted, “We are confident that STANLIB will be a solid majority owner of the asset.” If the option is exercised, Scatec's ownership in Kalkbult would return to approximately 31%, and to 28% in Linde and Dreunberg.

Despite the sale, Scatec will continue providing operations and maintenance and asset management services for the solar farms.

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