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Scatec Solar is expanding its solar power plants around the world and has become a favorite on the stock market. Participation is up 76 percent so far this year.
The company now announces that it has signed a binding agreement to buy all SN Power shares from the state-owned Norfund for $ 1.166 million, corresponding to 10.9 million crowns.
SN Power is best known for hydroelectric power production in developing countries.
In a separate press release, Norfund writes that last year it initiated a structured sales process for SN Power targeting international financial and industrial players. In July this year, the board of directors decided to enter into exclusive negotiations with Scatec Solar.
– The goal was to get the best deal that would fulfill Norfund’s mandate. Here Scatec Solar came up with the best offer, and we are pleased to help a Norwegian company now become a leader in both water and solar energy, says Tellef Thorleifsson, CEO of Norfund.
Will change name
As a result of the acquisition, Scatec Solar will now change its name to only Scatec as it grows into a broader energy company.
“The acquisition is an important part of Scatec Solar’s expanded growth strategy, which includes a broader investment in hydroelectric power, wind power and energy storage, as well as solar power. The new company will have a unique portfolio of power plants, a broad geographic presence and an attractive portfolio of new project opportunities, ”the Scatec Solar announcement states.
Scatec Solar CEO Raymond Carlsen and Jan Tellef Thorleifsson (right), director of Norfund, announced the acquisition today. (Photo: Fartein Rudjord)
– Hydroelectric energy and solar energy complement each other by providing opportunities for the sale of additional services and the optimization of energy supply from various energy sources. We also see great project opportunities in new growth markets in Southeast Asia and South Africa, in addition to access to projects with liquid solar in combination with hydroelectric power, says Raymond Carlsen, CEO of Scatec Solar in a statement.
Receive $ 6.6 billion in acquisition financing
The acquisition is financed by a combination of available cash from Scatec Solar’s balance sheet, a $ 200 million seller’s loan, a $ 150 million term loan, and $ 700 million in acquisition financing from Nordea, DNB, BNP Paribas and Swedbank. .
One of Scatec Solar’s plants in Honduras, Agua Free Solar Power Plant 1. (Photo: Scatec Solar)
Acquisition financing is available 12 months after the transaction is completed and is expected to be refinanced through debt and equity.
Earlier this spring, Scatec Solar raised nearly 2 billion kroner in a private placement.
According to the company, the acquisition is expected to deliver a return well in excess of Scatec Solar’s cost of capital and to be highly profitable on underlying earnings in 2020 and beyond.
Development Aid Minister Dag-Inge Ulstein is brilliantly satisfied and believes that the sale of SN Power shows how the government’s investment in renewable energy construction through Norfund has been profitable.
– When these investments provide a good return and it is possible to sell them to private investors, we have the opportunity to create more development through the released funds that can be used for new investments, he says.
Disappointing results
On Friday, Scatec Solar also released third-quarter results that fell short of analysts’ expectations.
Scatec achieved a pre-tax profit of NOK 10 million, compared to NOK 87 million in the same period last year. A pre-tax profit of NOK 158 million was expected in advance, according to estimates obtained by Bloomberg.
Revenues ended at NOK 731 million, compared to the expected NOK 766 million.
Scatec itself uses so-called proportional results in its reports as, according to the company, this provides a better overview of actual earnings. Proportional revenues fell in the quarter from the prior year due to lower construction activity, which was only partially offset by higher revenues from energy production.
“Ebitda fell 26 percent compared to the same period last year and 24 percent compared to the previous quarter, mainly driven by low construction activity in the quarter,” the report said.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be done with written permission or as permitted by law. For more terms, see here.
