Scatec Solar raises stake in 190-MW portfolio in S Africa

Scatec Solar ASA (OSL:SSO) has agreed to lift to 45% its shareholding in a 190-MW portfolio of three operational solar parks in South Africa, the Norwegian independent solar power producer said Thursday.

The transaction concerns the Kalkbult, Linde and Dreunberg photovoltaic (PV) farms, in which Scatec previously owned 39%. The Norwegian company and STANLIB Private Equity Infrastructure Fund 1, which is also a shareholder in the portfolio, are buying Norfund’s 21% interest in the Kalkbult plant, as well as KLP Norfund's 16% stake in the Linde and Dreunberg parks. Scatec Solar will purchase 33% of Norfund's shares, while South African infrastructure investment fund STANLIB will buy the rest.

The value of the deal was not disclosed, while closing is anticipated for the fourth quarter after receiving clearance from the South African competition watchdog.

Scatec noted that the investment will enable it to secure further solid returns from the particular PV assets and strengthen its portfolio approach to the South Africa market. Its CEO Raymond Carlsen noted that South Africa continues to be an important market for the Norwegian firm.

As previously announced, Scatec is working on three solar park projects in Upington, Northern Cape province, totalling 258 MW, together with its project partners.

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