Norwegian renewable energy company Scatec has concluded the second phase of its sale of stakes in three South African solar power plants: Kalkbult, Linde, and Dreunberg. The buyer is Greenstreet 1 Proprietary Limited, a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB Asset Management.
The gross proceeds from this second phase amounted to ZAR 433 million (USD 24 million), bringing the total transaction value to ZAR 921 million (USD 51 million). The assets were valued at a total enterprise value of ZAR 1.86 billion (USD 103 million), with an average valuation of USD 1.6 million per megawatt installed.
Financial details and transaction structure
The divested assets were associated with a total net debt of ZAR 939 million (USD 52 million) as of the second quarter of 2024. Following the transaction, Scatec retains a minority economic interest of 13% in Kalkbult and 12% in Linde and Dreunberg.
A clause in the agreement allows Scatec to repurchase the sold stakes for a symbolic sum of ZAR 1 when the power purchase agreements (PPAs) expire in 2034. If exercised, this option would restore Scatec’s ownership to 31% in Kalkbult and 28% in the other two plants.
Accounting gains
The transaction generates an accounting gain of ZAR 0.6 billion (NOK 0.4 billion) for the second phase, which will be recorded in the fourth quarter of 2024. On a consolidated basis, the entire operation produced a total gain of approximately ZAR 2.4 billion (NOK 1.5 billion).
Continued asset management and strategic implications
Despite the sale, Scatec remains involved in the management of the solar plants. The company will continue to provide operations, maintenance, and asset management services.
This transaction is part of a broader strategy to reallocate capital toward new renewable energy projects. The funds generated from this sale may be redeployed to similar initiatives without reducing the company’s commitment to the South African energy market.
