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Scatec Solar to acquire SN Power in USD 1.2bn deal
Posted on Friday, 16 October 2020 08:43
Scatec Solar has agreed to pick up Norwegian hydropower developer SN Power for an equity value of USD 1.17 billion.
The acquisition is part of the buyer’s broadened growth strategy to become a global large-scale player in solar, hydro, wind and storage services.
Both groups have a complementary portfolio of assets and will together hold a large project pipeline in these fields.
Scatec Solar will fund the acquisition through a combination of cash available from its balance sheet, a USD 200.00 million vendor note, USD 150.00 million term loan and USD 700.00 million acquisition financing from Nordea, DNB, BNP Paribas and Swedbank.
The transaction is subject to regulatory 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.
Combined, the businesses are expected to have 450 employees, power plants in 14 countries and gross 3.30 GW of plants in operation and under construction.
Once all facilities become fully operational in early 2021, the median annual production for the two firms is likely to be around 4.10 terawatt per hour.
SN Power is currently owned by Norwegian investment fund Norfund, which has been a long-term partner of Scatec Solar in a successful private-public partnership.
The parties will now establish a new joint venture for the target’s sub-Saharan Africa hydro assets and to develop a pipeline in the region.
Norfund will retain a 49.0 per cent stake and Scatec Solar will hold 51.0 per cent of the newly formed asset.
SN Power posted earnings before interest, taxes, depreciation and amortisation of NOK 1.15 billion (USD 123.26 million) on proportionate revenues of NOK 1.77 billion in 2019.
Together with Scatec Solar, the combined group will hold net debt of NOK 18.00 billion, of which NOK 6.80 billion is at group level, including the term loan and acquisition financing.
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