Oslo, 2 August 2024: Scatec ASA, a leading renewable energy provider, has today signed an agreement with Greenstreet 1 Proprietary limited, a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB Asset Management Proprietary Limited (“STANLIB”), to sell part of its ownership in the Kalkbult, Linde, and Dreunberg solar power plants, with a total capacity of 190 MW, for a gross consideration of ZAR 921 million (USD 50 million).

Scatec currently holds an economic interest of approximately 46 percent in the Kalkbult and 44 percent in the Linde and Dreunberg solar power plants. The transaction will be conducted through a two-step process, whereby Scatec will sell down to approximately 13 percent in Kalkbult and 12 percent in Linde and Dreunberg.

Scatec remains committed to long term investment in South Africa and will continue to provide Operations & Maintenance and Asset Management services to the three facilities, which were won under Rounds 1 and 2 of South Africa’s REIPPP Programme.

“This transaction signifies continued implementation of our strategy to recycle capital into new investments in renewable energy. We are very pleased to secure a 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 going forward,” says Scatec CEO Terje Pilskog.

“Having been in South Africa for over a decade, we have grown into a leading renewable energy player in the country.  South Africa will continue to remain a core growth market for us, and we will continue to build scale through new investments, including the Grootfontein solar projects under construction, the Mogobe battery storage project, and through Lyra Energy, our private sector focused vehicle,” adds Pilskog.

The first phase of the transaction is estimated to close in the second half of 2024 and the second phase in the first half of 2025. Closing of the transaction is subject to customary consents including lender, shareholder, and regulatory authority approvals. The accounting effects will be disclosed at closing of the transaction.

Notes to editors

• Kalkbult: The Kalkbult plant, situated in the Northern Cape region, was the first project commissioned under Round 1 REIPPP in March 2014. The project holds a 20-year PPA with Eskom, the national utility company.

• Linde: Situated in the arid Karoo region of the Northern Cape, Linde benefits from extremely high levels of irradiation. Linde was commissioned in July 2014 and holds a 20-year PPA with Eskom, the national utility company.

• Dreunberg: Dreunberg is situated in the Eastern Cape of South Africa. Commissioned in December 2014, Dreunberg was the second project won under Round 2 of the REIPPP Programme. The project holds a 20-year PPA with Eskom, the national utility company.

• STANLIB is the second largest asset manager (by assets under management) in South Africa, and part of Standard Bank Group Limited.