Scatec ASA completes SN Power acquisition

Source: press release, 29 January 2021

illustration: Scatec
illustration: Scatec

Scatec has now received all necessary approvals and conditions are fulfilled to close the acquisition of 100% of the shares in SN Power from Norfund for a total equity value of USD 1,166 million.

“This acquisition forms a very important part of our broadened growth strategy, with an ambition to become a global player in solar, hydro, wind and storage solutions, and an integrator of high-value infrastructure solutions. We are looking forward to start working together with our new colleagues from SN Power and I trust that we will be successful in building a global leader in renewable energy,” says Raymond Carlsen, CEO of Scatec.

The acquisition is fully funded through cash and a USD 200 million vendor note, a USD 150 million term loan, and a USD 400 million acquisition finance facility provided by Nordea, DNB and Swedbank.

Jarl Kosberg has been appointed EVP Project Development Hydropower, reporting to CEO Raymond Carlsen. Kosberg has more than 35 years’ experience from international energy projects and leadership positions in companies such as Exxon, Aker & Kvaerner, Statkraft & SN Power and Green Resource.

In late January, the acquisition of SN Power’s first wind farm, the 39.4 MW Dam Nai wind project in Vietnam was completed. The asset consists of 15 Siemens wind turbine generators, each with a rated capacity of 2.625 MW. The average annual generation is 123 GWh with expected annual revenues of USD 10.5 million under the 20-year Feed in Tariff scheme for wind in Vietnam.

With SN Power, Scatec will significantly increase scale and cash flow from operating plants with a total of 3.3 GW in operation and under construction, and a project pipeline of almost 10 GW. The company will have 450 employees, power plants in 14 countries and the median annual production is expected to be 4.1 TWh when all plants are in full operation during first half of 2021.