Scatec seals exit from 258-MW solar farm complex in S Africa

Norwegian renewable power producer Scatec ASA (OSL:SSO) has closed the sale of its 42% equity stake in the 258-MW Upington solar farm complex in South Africa, the firm said on Thursday.

With this deal, the largest shareholding in the Upington complex passes on to a fund managed by STANLIB Asset Management Pty Ltd, which Scatec announced as the buyer earlier this year.

The transaction closed for a gross consideration of ZAR 973 million (USD 49.4m/EUR 46.1m) the proceeds that Scatec will use to make new investments in renewable energy, Thursday’s press release reads.

Scatec will continue to provide operations and maintenance and asset management services to Upington’s three solar farms.

“South Africa remains a focus market for us, and we will continue to build scale through new investments in the country, commented Scatec CEO Terje Pilskog.

Norfund, the Norwegian Investment Fund for Developing Countries, was supposed to sell its 18% stake in Upington in the same transaction. Scatec did not say whether Norfund closed its part of the deal.

The Upington complex is made up of Dyason’s Klip 1, Dyason’s Klip 2 and Sirius solar farms. All three plants were commissioned in 2020.

(ZAR 1.0 = USD 0.051/EUR 0.047)

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