Scatec enters into agreement to sell Totalenergies’ African hydropower assets in line with strategy

(MENAFN – GlobeNewsWire – Nasdaq) Oslo, 30 July 2024: Scatec ASA, a leading renewable energy provider, has signed an agreement with TotalEnergies to sell a 51 percent stake in its African hydropower joint venture with Norfund and British International Investment (BII), in line with the company’s strategy. The proceeds from the transaction will be used to support Scatec’s self-financing growth plan.

The sale includes Scatec’s indirect interest, held through SN Power, in the operational 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 on the border of Rwanda, the Democratic Republic of Congo and Burundi. The joint venture was formed in 2021 by Scatec and Norfund, a Norwegian investment fund for business in developing countries, as part of the acquisition of SN Power. In 2022, BII joined as a co-investor. The transaction supports the continuity of hydropower operations on the continent, including commitments to projects and stakeholders.

“Our decision to sell our African hydro assets is consistent with our strategy to focus the majority of our investments on our core markets and on solar, wind and battery storage, while divesting assets in non-core markets. We are pleased to announce today’s transaction as we believe TotalEnergies will be a strong asset owner going forward, with the ability to continue to develop projects and contribute to Africa’s energy transition. We would like to thank the entire hydro team for their hard work and dedication over the years, which has made a significant impact. We also thank our joint venture partners, host governments and lenders for their support since 2020,” he said. Terje Pilskog, General Director of Scatec.

“This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent’s energy transition by bringing electricity to African people. In particular, we are pleased to become a hydropower player in Uganda, a country where we are also developing a major oil project. This is another example of TotalEnergies’ ability to implement its multi-energy strategy in oil-producing countries to support their energy transition,” he said. Patrick Pouyanné, Chairman of the Board and CEO of TotalEnergies.

The transaction is subject to conditions and approvals from stakeholders, including lenders and joint venture partners, and is expected to close in the first half of 2025. The transaction price and final accounting implications will be disclosed at closing due to commercial considerations.

For further information please contact:
For analysts and investors: Andreas Austrell, Vice President Investor Relations, tel.: +47 974 38 686, …
For media: Meera Bhatia, Senior Vice President, External Relations and Communications, tel.: +47 468 44 959, …

About Scatec
Scatec is a leading provider of renewable energy solutions, accelerating access to reliable and affordable clean emerging markets. As a long-term player, we develop, build, own and operate renewable energy plants, with 4.6 GW in operation and under construction across four continents. We are committed to growing our renewable energy capacity, delivered by our passionate employees and partners, driven by a shared vision of “Improving Our Future”. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the symbol “SCATC”. To learn more, visit us or connect with us on LinkedIn.

This information is considered confidential information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to sections 5-12 of the Norwegian Securities Trading Act.

This stock exchange press release was published by Kine Aaltvedt, IR Analyst at Scatec ASA, on July 30, 2024 at 08:00 CEST.

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