Norwegian renewables company Scatec ASA has completed the first phase of a transaction to sell a portion of its stake in three solar farms in South Africa, totaling 190 MW, for an enterprise value of USD 1.7 million (EUR 1.5 million) per megawatt. The transaction involves the solar farms Kalkbult, Linde, and Dreunberg, and is part of a deal with South African investment firm STANLIB, which is already a shareholder in the projects.
On Monday, Scatec announced that it received a gross consideration of ZAR 921 million (USD 53.2 million or EUR 48 million) from the first phase of the share sale to STANLIB. With a net debt of ZAR 939 million, the enterprise value associated with the sold ownership amounted to approximately ZAR 1.86 billion.
Prior to the sale, Scatec held a 46% stake in Kalkbult and 44% stakes in both Linde and Dreunberg, alongside equity partners including STANLIB, Old Mutual, Simacel, and Community Trust. Following this initial phase, Scatec's ownership interest has decreased to around 31% in Kalkbult and 28% in Linde and Dreunberg.
The second phase of the deal is subject to approvals from lenders, shareholders, and regulators, and is anticipated to close in the first half of 2025. Following this phase, Scatec's interest is expected to shrink further to approximately 13% in Kalkbult and 12% in Linde and Dreunberg.
The Kalkbult solar farm, located in the Northern Cape, and the Dreunberg facility in the Eastern Cape each have an installed capacity of 75 MW, while the Linde project contributes 40 MW. All three solar plants were commissioned in 2014 and operate under 20-year power purchase agreements (PPAs) with South Africa's national utility, Eskom.
