Norfund sells SN Power to Scatec Solar
After building SN Power into a leading hydropower company in developing countries, Norfund, Norway’s development finance institution, has sold all the shares to Norwegian energy developer Scatec Solar for $1.17 billion. ”The deal opens new opportunities for us to reinvest capital in projects that are crucial to fight poverty and avoid carbon emissions,” says Tellef Thorleifsson, CEO of Norfund.
Norfund has, as owner of SN Power, been instrumental in building a leading hydropower company in developing countries. Each year, SN Power plants produce power equivalent to the electricity consumption of 7 million people and help avoid 3 million tonnes of carbon emissions.
”The team in SN Power and Norfund has done a fantastic job. Our investment in SN Power has yielded an annual return (IRR) of 19% in NOK (12% in USD). We have thus delivered profits and enabled significant social and economic development,” says Thorleifsson.
With the sale of SN Power all shares and employees in the company will be incorporated into Scatec Solar.
Norfund receives $966 million of the settlement in cash and $200 million as a seller credit.
Completion of the transaction is subject to approvals from relevant competition authorities, partners and lenders. SN Power’s facilities in Zambia and Panama will remain owned by Norfund. The parties will collaborate on SN Power’s projects in Africa, where Norfund retains a 49% stake. The current collaboration in solar energy will also continue.
”Hydropower and solar PV are complementary, resulting in new project opportunities, for instance floating solar on hydro reservoirs. With this transaction we see great potential in broader project origination and expansion into growth markets,” says Raymond Carlsen, CEO of Scatec Solar.
Reach Africa’s private equity community by publishing a Showcase Article, Job Opportunity or Event on Africa Private Equity News. Contact us at editor@africaprivateequitynews.com for our rate card and more information.