Deals



Scatec Solar acquires SN Power, building a global leader in renewable energy


Posted: 19th October 2020 10:37

Scatec Solar has signed a binding agreement to acquire 100% of the shares in SN Power, a leading hydropower developer and IPP, from Norfund for a total equity value of USD 1,166 million.

The acquisition forms an important part of Scatec Solar’s broadened growth strategy, with an ambition to become a global large-scale player in solar, hydro, wind and storage solutions, and an integrator of high-value infrastructure solutions.

Scatec Solar 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 combined company will have 450 employees, power plants in 14 countries and gross 3.3 GW of plants in operation and under construction. When all plants are in full operation from early 2021, the median annual production is expected to be 4.1 TWh.

“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,” says Raymond Carlsen, CEO of Scatec Solar.

“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,” says Tellef Thorleifsson, CEO of Norfund. 

Key transaction highlights

Compelling strategic benefits

Financial details

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 then the two companies will continue to operate as separate entities.

Integration preparations will start immediately. Scatec Solar will continue to be listed on Oslo Stock Exchange (Oslo Børs) and intends to change its name to Scatec.

For additional information, see the attached investor presentation. 

Advisors
J.P. Morgan (financial), SpareBank1 Markets (financial), Selmer (legal), EY (financial and tax due diligence), Multiconsult (environmental & social due diligence) and Sweco (technical and environmental & social due diligence) acted as advisors to Scatec Solar in connection with the transaction.

Invitation to investor presentation today at 10:00 am CEST
A presentation for investors and analysts followed by a Q&A session will be held at Felix Konferansesenter in Oslo and through a live webcast today at 10:00 am CEST. To attend the live presentation, please email: ir@scatecsolar.com. You can follow the webcast from our website: www.scatecsolar.com, or this direct link: https://channel.royalcast.com/webcast/hegnarmedia/20201016_3. You may ask questions through the webcast solution, or email your question to ir@scatecsolar.com.

For further information, please contact:

Mikkel Tørud, CFO, tel: +47 976 99 144, ir@scatecsolar.com

Ingrid Aarsnes, VP Communication & IR, tel: +47 950 38 364, ingrid.aarsnes@scatecsolar.com

About Scatec Solar
Scatec Solar is an integrated independent renewable power producer, delivering affordable, rapidly deployable and sustainable clean energy worldwide. A long-term player, Scatec Solar develops, builds, owns, operates and maintains power plants and has an installation track record of more than 1.6 GW. The company has a total of 1.9 GW in operation and under construction on four continents.

With an established global presence and a significant project pipeline, the company is targeting a capacity of 4.5 GW in operation and under construction by end of 2021. Scatec Solar is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SSO’. To learn more, visit www.scatecsolar.com. For images, see www.scatecsolar.com/image-gallery/


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