The company is also raising its stake in renewable project development company Vindr group to 50%
Norwegian renewable energy developer Magnora has agreed to acquire 100% of the shares in a South Africa-based special purpose company for its 775MW greenfield renewable development portfolio.
The company will also raise its stake in renewable project development company Vindr group to 50%, which is merging with an onshore wind and solar PV project developer in South Africa.
The project developer is developing around 2GW onshore wind and solar PV projects on its own and on behalf of its clients.
Magnora executive chairman Torstein Sanness said: “We believe these two investments have an excellent value-creating potential for our shareholders, and are delighted to land them both. South African authorities are highly dedicated to the development of renewable energy.
“Last year it was decided to deregulate the electricity market in South Africa, which has led to several positive developments that eases off-take from renewable energy plants. The political and regulatory framework is stable, and the wind and solar conditions are excellent.
“We look forward to further developing these attractive prospects. Magnora management and Board has long experience from South Africa and a local network of people who knows the market well.”
Magnora has initially acquired 25% stake in Vindr in March 2020, with an option to acquire an additional 25% ownership.
With the transaction, the company is expected to gain more than 1GW net potential of renewable energy projects in the South African market.
Vindr group is expected to have a strong presence in Norway, Sweden, and South Africa, following the closing of the transaction.
Magnora operations EVP Peter Nygren said: “The Vindr team has over the past year developed an impressive portfolio of wind power project opportunities in Norway and Sweden and will continue to focus on these markets in the years to come. We are delighted to increase our ownership to 50 percent in the company.”