SOUTH AFRICA: Scatec Closes Transaction to Divest Upington Solar Plants

Scatec has closed the previously announced transaction to divest the Upington solar plants in South Africa.

The gross consideration for divestment of Scatec’s 42% equity-share in the 258-megawatt (MW) plants is ZAR 973 million (NOK 546 million). As previously communicated the proceeds will be recycled into new investments within renewable energy.

We are very pleased to secure a value accretive transaction, in line with our strategy to optimise our portfolio and recycle capital. South Africa remains a focus market for us, and we will continue to build scale through new investments in the country. I would like to thank all parties involved in the transaction,’ says Scatec CEO Terje Pilskog.

The net accounting gain is estimated to be NOK 791 million on a consolidated basis and NOK 348 million on a proportionate basis. The difference is primarily explained by the D&C margin related to the projects which has been eliminated in the consolidated statement of financial positions.

Scatec will continue to provide operations & maintenance (O&M) and asset management services to the plants.