Scatec completes sale of African hydropower assets to TotalEnergies

The transaction closed at an agreed sales price of US$167 million, based on a valuation date of 31 December 2023. The net proceeds from the transaction are estimated at US$161 million, adjusted for cash movements between the valuation date and the closing date. The proceeds from the transaction will be used to support Scatec’s self-funded growth plan and for additional debt repayments at corporate level.

The sales agreement includes the operating 255 MW Bujagali hydropower plant in Uganda, and a development portfolio consisting of the 361 MW Mpatamanga in Malawi and the 206 MW Ruzizi III at the border of Rwanda, Democratic Republic of Congo, and Burundi. As part of the transaction, the Hydro Africa team will be transferred to TotalEnergies in an entity incorporated as SN Power AS.

“We are pleased with closing the transaction to sell our stake in the African hydropower assets to TotalEnergies. The divestment is in line with our strategy to optimise our portfolio and focus the majority of our investments in our core markets and on solar, onshore wind and battery energy storage. We are confident that TotalEnergies will be a strong owner going forward. I would especially like to thank the hydropower team that now moves to TotalEnergies for their hard work and dedication over the years,” said Scatec CEO, Terje Pilskog.

The transaction has generated a total proportionate accounting effect of approximately US$30 million and consolidated accounting effect of approximately US$50 million, to a large extent driven by foreign currency effects, which will be recognised in 1Q25.

 

 

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