Globeleq, UK-based developer of energy and power-generation solutions, has completed the acquisition in SA of four renewable generation plants and an asset management company from an affiliate of Brookfield Asset Management.
The company says the addition of these entities strongly complements Globeleq’s existing renewable power business in SA, where it already owns, operates and manages 238MW of solar and wind projects.
The solar assets acquired include Aries (11MW), Konkoonsies (11MW), Soutpan (31MW) and the Klipheuwel wind farm (27MW).
Globeleq says the acquisition of interests in the Boshof (66MW) solar plant is expected to close in the coming weeks.
“We are not disclosing the value of the transaction due to the confidentiality obligations we have with our project partners,” Michael Ozersky, Globeleq MD for project finance and M&A, told ITWeb via e-mail.
“But I can add that Standard Bank acted as the sole mandated underwriter and arranger of the acquisition debt facility.”
To outline the transaction, Ozersky says in March 2018, Brookfield ran a limited sale process to divest its assets in South Africa. Globeleq was granted exclusivity on the deal, and on 18 July 2018, Brookfield and Globeleq announced a definitive agreement had been achieved to acquire the assets subject to various conditions and approvals, he notes.
Since then, all stakeholders have been working to conclude the transaction, resulting in Globeleq acquiring five of the six assets which Brookfield owned in SA.
Financial close for four of the plants was reached this month.
The projects originally reached commercial operations in 2014 and have a 20-year power purchase agreement with Eskom.
Paul Hanrahan, Globeleq CEO, comments: “The addition of these renewable plants further establishes Globeleq’s position as a power sector leader in Africa by expanding our renewable energy footprint across the continent. This acquisition will deliver significant value for all stakeholders, including the local community.”
Globeleq believes the transaction will unlock additional equity investments into these assets and foster skills development and knowledge transfer within the local industry.
It adds that the transaction has strong synergy with Globeleq’s existing assets and offers an opportunity for further operational improvements and as well as delivering improvements to the existing social and economic development programmes.
Rentia van Tonder, Standard Bank’s head for power and corporate and investment banking, says: “The transaction is another step in growing a leading, sustainable African energy provider supported by a leading African bank.
“Through our partnership with Globeleq, we are enabling growth on the continent, providing accessible and sustainable energy sources to the people of South Africa.”
Since 2002, Globeleq has built a diverse portfolio of independent power plants, generating approximately 1 300MW in eight locations across five African countries. These are Zambia, Ivory Coast, Tanzania, Cameroon, Kenya and SA.
“South Africa’s energy mix is moving away from coal dependency to cleaner energy choices, which are not only beneficial for the environment, but also provide much-needed energy for the country’s economic growth as well as socio-economic transformation,” says Dhesen Moodley, MD of Globeleq SA.
“Added to this, renewable energy tips the pricing scales, as it is now cost-competitive, a pricing trend that has been led by the South African market and well proven globally.”
Share