Scatec ASA has closed the transaction on the sale of its 51% stake in the African hydropower joint venture with Norfund and British International Investment (BII) to TotalEnergies.
The transaction closed on February 28 at an agreed sales price of $167 million, based on a valuation date of 31 December 2023. The net proceeds from the transaction are estimated at $161 million, adjusted for cash movements between the valuation date and the closing date. The proceeds from the transaction will be used to support Scatec’s self-funded growth plan and for additional debt repayments at corporate level.
The sales agreement includes the operating 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 at the border of Rwanda, DRC, and Burundi. As part of the transaction, the Hydro Africa team will be transferred to TotalEnergies in an entity incorporated as SN Power AS.
“We are pleased with closing the transaction to sell our stake in the African hydropower assets to TotalEnergies,” said Scatec CEO Terje Pilskog. “The divestment is in line with our strategy to optimise our portfolio and focus the majority of our investments in our core markets and on solar, onshore wind and battery energy storage. We are confident that TotalEnergies will be a strong owner going forward. I would especially like to thank the hydropower team that now moves to TotalEnergies for their hard work and dedication over the years.”
The transaction has generated a total proportionate accounting effect of approximately $30 million and consolidated accounting effect of approximately $50 million, primarily driven by foreign currency effects, which will be recognized in the first quarter of 2025.
Scatec and Norwegian investment fund Norfund established the JV in 2021 as part of the SN Power acquisition to support hydropower activities in Africa. In 2022, British International Investment joined as a co-investor.
TotalEnergies will acquire minority stakes in two projects under development in Rwanda (260 MW) and Malawi (360 MW), as well as a 28.3% stake in the Bujagali hydropower plant currently in operation in Uganda. With a capacity of 250 MW, it covers more than 25% of the country’s peak electricity demand.
The decision to divest its hydropower assets aligns with Scatec’s strategy to focus investments on its core markets, including solar, wind and battery energy storage.
