SN Power has acquired a 40.65% stake in Brazilian renewable power company Desenvix, with the company now set to form a JV partnership with Desenvix’s current owners Jackson and Funcef to focus on further hydropower development in Brazil.
Following the acquisition SN Power and Jackson now have joint control of Desenvix with a 40.65% shareholding each, while Funcef will retain a minority shareholding of 18.69%. The transaction also includes Desenvix´s 100% shareholding in Enex, a company specializing in operation and maintenance of small and medium sized hydroelectric plants.
“This partnership in Desenvix represents a match with the strategy of SN Power for Brazil, as it provides solid partners, sound operating assets, and an experienced local organization with a proven track record”, commented Torger Lien, CEO of SN Power.
Desenvix currently has a portfolio of renewable energy assets of 221MW in operation, 116MW under construction, and about 1600MW in development. The assets are mainly hydropower located in the South and Southeast regions of Brazil, but also include two wind farms and a biomass plant.
The main target for the new JV will be to focus on further hydropower development, with the aim to reach 1000MW in Brazil by 2018.
“The development pipeline of Desenvix represents enough quality hydropower projects for SN Power to reach its growth objectives in Brazil in the short term and to create value going forward”, added Lien.
The transaction represents a capital injection for SN Power of MBRL 705, which is the largest transaction SN Power has undertaken to date, and positions SN Power in the fast growing Brazilian energy market – a target market for the company.