Equinor Increases Stake in Scatec Solar With Purchase of 6.5 mn Shares

Equinor has acquired 6,500,000 shares in Scatec Solar, corresponding to 5.2 percent of the shares and votes, at a total purchase price of USD 84 million.

The Apodi Solar Plant in Brazil. (Ole Jørgen Bratland / Equinor ASA)

Equinor has acquired 6,500,000 shares in Scatec Solar, corresponding to 5.2 percent of the shares and votes, at a total purchase price of NOK 754 million (USD 84 million). The purchase price per share is NOK 116 which compares to the closing price on December 19, 2019, of NOK 110.5 and to Scatec Solar’s equity issuance price on 24 September of NOK 116. Following the transaction Equinor owns a total of 18,965,400 shares of Scatec Solar, raising its total shareholding to 15.2 percent of the shares and votes.

Pål Eitrheim, executive vice president for New Energy Solutions in Equinor said that through this acquisition of additional shares in Scatec, Equinor further strengthens its exposure to the fast-growing solar energy sector.

“Since acquiring a 10 percent interest a year ago, we have continued to work effectively with Scatec’s management and now we are capitalising on an opportunity to acquire an additional stake in this high performing company.

“Our shareholding in Scatec Solar remains an important long-term investment for Equinor and reinforces our strategy to develop a strong position in renewables to secure lasting value for our shareholders. Scatec has a very capable management team and a proven strategy for value creation. We look forward to continuing to engage with the company.”

Partnering with Scatec Solar, Equinor entered its first solar development project in 2017 via the Apodi asset in Brazil, followed by a second joint project in June 2018 with the Guanizul 2A in Argentina.

Recently, Scatec Solar has been awarded three solar power plant projects in Tunisia totaling approximately 360 MW, following an international tender launched by the Tunisian Ministry of Industry and SMEs earlier this year.

The three projects of approximately 60 MW, 60 MW and 240 MW will be located in Tozeur, Sidi Bouzid and Tataouine respectively. The solar power plants will hold 20 years of PPAs with Société Tunisienne de l’Electricité et du Gaz (STEG). The solar plants are expected to generate about 830 GWh per year, enough electricity to power more than 300,000 Tunisian households annually and contributing to avoid 480,000 tonnes of CO2 emissions each year.