Norwegian renewable energy company Scatec has agreed to sell its 51% stake in an African hydropower joint venture to TotalEnergies. The proceeds from the transaction will be used to support the firm’s self-funded growth plan.
The sale covers Scatec’s indirect interest, held through SN Power, in the operational 255-megawatt Bujagali hydropower plant in Uganda, and a development portfolio consisting of the 361MW Mpatamanga in Malawi and the 206MW Ruzizi III at the border of Rwanda, Democratic Republic of the Congo, and Burundi. Norton Rose Fulbright advised TotalEnergies.
SN Power holds its stakes as part of a joint venture (51% SN Power) with Norfund and British International Investment (BII).
Scatec is listed on the Oslo Stock Exchange. The joint venture was established in 2021 between Scatec and Norfund, the Norwegian investment fund for business activities in developing countries, as part of the SN Power acquisition. In 2022, BII joined as a co-investor.
The transaction, subject to certain conditions, will see TotalEnergies acquire a 28.3% interest in the Bujagali hydropower plant, which covers more than 25% of Uganda's peak electricity demand. TotalEnergies will also acquire minority stakes in two renewable hydropower projects under development in Rwanda and Malawi.
“Our decision to sell our African hydropower assets is in line with our strategy to focus the largest share of our investments in our core markets and on solar, wind and battery energy storage, while divesting assets in non-focus markets," says Scatec chief executive officer Terje Pilskog.
In a separate deal, Scatec signed an agreement with Greenstreet 1 Proprietary Ltd, a subsidiary of Stanlib Infrastructure Fund II, to sell part of its ownership in the Kalkbult, Linde, and Dreunberg solar power plants in South Africa with a total capacity of 190MW, for a gross 921 million rand (US$50.5 million).
Stanlib is the second largest asset manager (by assets under management) in South Africa and part of Standard Bank Group.
Scatec currently holds an economic interest of approximately 46% in the Kalkbult and 44% in the Linde and Dreunberg solar power plants.
