Norwegian company Scatec Solar has signed a binding agreement to acquire 100% of the shares in SN Power, a hydropower developer and independent power producer, from Norfund for a total equity value of $1166m.
Scatec Solar said the acquisition forms an important part of its broadened growth strategy, with an ambition to become a global large-scale player in solar, hydro, wind and storage solutions, as well as an integrator of high-value infrastructure solutions.
The combined company will have 450 employees, power plants in 14 countries and 3.3GW of generation capacity in operation and under construction.
This includes a portfolio of hydropower assets in the Philippines, Laos and Uganda with a total capacity of 1.4GW.
When all plants are in full operation from early 2021, the median annual production is expected to be 4.1 terrawatt-hours.
Scatec Solar said it and SN Power have a unique and complementary portfolio of assets, geographical footprint and capabilities, and will together hold a large project pipeline across solar, hydro, wind and storage.
The deal will further accelerate Scatec Solar’s growth and the company will have a combined project pipeline of 9.5GW across solar, hydro, wind and storage.
The transaction is conditional upon customary regulatory approvals and local competition approvals and is likely to be completed in the first half of 2021.
Until that time, the two companies will continue to operate as separate entities.
Scatec Solar chief executive Raymond Carlsen said: “Hydropower and solar PV are complementary technologies, resulting in new project opportunities, for instance floating solar on hydro reservoirs.
“With this transaction we see great potential in broader project origination and geographical expansion into growth markets in South East Asia and Sub-Sahara Africa.
“SN Power adds scale and significant cash flow from operating plants and will raise stakeholder value; benefiting customers, employees, shareholders, business partners and the societies in which we operate.”
Norfund chief executive Tellef Thorleifsson said: “Norfund’s investment in SN Power has contributed to job creation, improved living conditions and avoided carbon emissions.
“By mobilising private capital in SN Power, we can recycle significant funds for new investments, demonstrating the effectiveness of using development aid to invest in clean energy in developing countries.”