South Africa: Standard Bank advises Cennergi on a landmark renewable energy acquisition
Standard Bank’s Mergers & Acquisition Advisory team led the transaction end-to-end.
By Standard Bank
Standard Bank acted as exclusive financial adviser to Cennergi, a wholly owned subsidiary of Exxaro Resources, in its strategic acquisition of 54.9% of the 138MW Gouda Wind Farm, 54.9% of the 75MW Sishen Solar Plant, and 80% of the operations and maintenance company servicing both assets, from ACCIONA Energía.
The transaction, valued at between R1.7 billion (about $99.5 million) and R1.8 billion (about $105.4 million), increases Cennergi’s net operating capacity by 117 MW, from 200 MW to approximately 317 MW, representing a material expansion of its operational base. When combined with 180 MW of projects currently under construction, Cennergi’s total capacity in operation and under construction will reach approximately 497 MW, the majority of which comprises wind projects. In addition, the transaction also highlights Standard Bank’s commitment to advancing sustainable energy and driving Africa’s growth through infrastructure investment.
The rapidly evolving renewable energy sector in South Africa presents significant growth opportunities. However, acquiring established utility-scale assets demands intricate expertise and strategic foresight. Cennergi, backed by Exxaro, sought to expand its operational footprint and secure long-term ownership of key assets aligned with its sustainability goals.
Standard Bank’s Mergers & Acquisition (M&A) Advisory team led the transaction end-to-end, providing strategic guidance, rigorous valuation support, and expert deal structuring. The team coordinated due diligence, negotiated key documents, and resolved complex commercial issues. Leveraging deep sector knowledge and strong stakeholder relationships, the bank delivered a tailored solution aligned with Cennergi’s growth ambitions and governance standards.
This acquisition not only enhances Cennergi’s role as a leading independent power producer but also contributes to South Africa’s climate goals and energy diversification. The inclusion of the operations and maintenance company ensures operational continuity and job preservation, while Cennergi’s long-term ownership model promotes reinvestment into local communities through enterprise development and socio-economic upliftment initiatives.
Navigating a multifaceted and high-stakes transaction, Standard Bank demonstrated its commitment to delivering strategic, value-enhancing outcomes and reinforcing its leadership in complex M&A advisory.