Norway's Scatec Solar to buy hydropower firm SN Power in $1.17 billion deal
Reuters
Published Oct 16, 2020 08:02
OSLO (Reuters) - Norwegian solar firm Scatec Solar (OL:SCAA) said on Friday it had agreed to buy state-owned hydropower firm SN Power in a $1.17 billion deal, with the aim of becoming a global renewables company.
The combined company would have 450 employees, power plants in 14 countries and 3.3 gigawatts (GW) in capacity at plants in operation and under construction, Scatec Solar said in a statement.
"Hydropower and solar PV (photovoltaics) are complementary technologies, resulting in new project opportunities, for instance floating solar on hydro reservoirs," Scatec Solar CEO Raymond Carlsen said.
The deal would also help Scatec Solar expand in growth markets for renewable energies such as sub-Saharan Africa and southeast Asia, Carlsen said.
The deal highlights the interest in renewable energy assets worldwide as countries and companies try to cut their greenhouse gas emissions. Nordic investors, in particular, have been pushing companies to become greener.
"As the largest asset manager in the Nordic region we strongly support the transition from harmful coal towards clean solar and wind energy globally," Eric Pedersen, head of responsible investments at Nordea Asset Management, said regarding the deal on Friday.
Scatec Solar is buying 100% of the shares in SN Power, owned by Norfund, an investment fund for developing countries owned by the Norwegian state, for a total equity value of about $1.17 billion.
"When all plants are fully operational from early 2021, the median annual production is expected to be 4.1 TWh (terawatt-hours)," Scatec Solar said.
Scatec owns and runs solar farms with a total capacity of 1.9 GW across Africa, Asia, Europe and Latin America.
SN Power builds and operates dams in southeast Asia and Africa.
"The deal opens new opportunities for us to reinvest capital in projects that are crucial to fight poverty and avoid carbon emissions," Norfund CEO Tellef Thorleifsson said.
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Written By: Reuters
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