Scatec Completes Initial Phase of Solar Power Plant Sale
Scatec Concludes First Phase of Solar Power Plant Sale
Scatec ASA, a prominent player in the renewable energy sector, has completed the first phase of selling a portion of its ownership in the Kalkbult, Linde, and Dreunberg solar power plants. This transaction was made with Greenstreet 1 Proprietary Limited, a subsidiary of STANLIB Infrastructure Fund II, managed by STANLIB Asset Management Proprietary Limited.
Transaction Overview and Financial Impact
In this initial transaction, Scatec received an impressive gross consideration of ZAR 921 million (approximately USD 53 million) for the ownership stake sold. Notably, as of the end of the second quarter of 2024, the net interest-bearing debt associated with the sold shares was ZAR 939 million (about USD 55 million). This translates to an estimated enterprise value for the transaction of around ZAR 1.86 billion (roughly USD 108 million), equating to an enterprise value of USD 1.7 million per megawatt.
Economic Interests Post-Transaction
Post-closure, Scatec retains a significant economic interest, holding approximately 31% in Kalkbult and 28% in both Linde and Dreunberg. These plants will now be regarded as joint ventures in Scatec's financial accounts, enabling the company to report a substantial accounting gain of approximately ZAR 2.4 billion (NOK 1.5 billion) on a consolidated basis. The first phase of the transaction alone results in an accounting gain of around ZAR 0.6 billion (NOK 0.4 billion), which will be reflected in the financial results for the third quarter of 2024.
Future Phases of the Transaction
Looking ahead, the second phase of this significant transaction is anticipated to be finalized in the first half of 2025. At that point, Scatec's economic interest will diminish further, dropping to approximately 13% in Kalkbult and 12% in both Linde and Dreunberg. The successful completion of this second phase hinges on standard consents, including those from lenders, shareholders, and regulatory authorities.
Long-Term Strategy and Commitment to Renewable Energy
Scatec continues to demonstrate its long-term commitment to renewable energy by actively developing, building, owning, and operating solar power plants around the globe. With 4.7 GW currently in operation and under construction across four continents, the company is poised to expand its renewable energy footprint. Scatec's dedicated employees and partners work tirelessly to support their vision of 'Improving our Future'.
Contact Information
For more information, stakeholders can reach out to:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686, andreas.austrell@scatec.com.
For media inquiries: Meera Bhatia, SVP External Affairs & Communications, phone: +47 468 44 959, meera.bhatia@scatec.com.
Frequently Asked Questions
What is the significance of Scatec's recent transaction?
This transaction allows Scatec to streamline ownership while securing financial benefits, showcasing their commitment to renewable energy.
How much did Scatec earn from this sale?
Scatec received a gross consideration of ZAR 921 million (USD 53 million) from the sale.
What will happen to Scatec’s interests after the second phase?
After the second phase, Scatec's economic interest will decline to approximately 13% in Kalkbult and 12% in Linde and Dreunberg.
When will the accounting gains be recognized?
The gains will be recognized in the financial results for the third quarter of 2024.
What is Scatec's vision as a renewable energy provider?
Scatec aims to improve future energy access through reliable and affordable renewable solutions across emerging markets.
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