Scatec, a leading renewable energy provider, has signed an agreement to sell the 39-megawatt (MW) Dam Nai Wind farm and the associated operating company in Vietnam to Sustainable Asia Renewable Assets ('SARA'), a utility-scale renewable energy platform of the SUSI Asia Energy Transition Fund ('SAETF'). Scatec will receive an upfront consideration of USD 27 million for its 100% equity stake at completion, with potential for additional earn-out payments of up to USD 13 million that are subject to certain conditions being fulfilled prior to May 2026.
'We have decided to exit Vietnam after operating the Dam Nai wind farm since the acquisition of SN Power in 2021. We are satisfied with the agreed price and the sale is in line with our strategy to optimise our portfolio and focus on markets where we see further attractive growth opportunities. We are confident that SUSI will be a strong owner of the wind farm and will continue to contribute to the renewable energy journey of Vietnam. We would like to thank our local team for their contributions over the last years, as well as our partners, government stakeholders and lenders,' says Scatec CEO Terje Pilskog.
Total net interest bearing debt related to the Dam Nai Wind farm was approximately USD 28 million at the end of the second quarter 2024, amounting to a transaction enterprise value of up to USD 68 million including the contingent earn-out payment. The wind farm has additionally generated a cash flow to equity of approximately USD 14 million to Scatec since the acquisition in 2021.
The transaction is expected to close within the first half of 2025, subject to customary regulatory approvals. At the Scatec Group level, the transaction is estimated to generate an accounting gain at closing of approximately USD 8 million on a proportionate and consolidated basis, including a fair value estimate of the contingent consideration. Following the transaction Scatec will exit all operations in Vietnam resulting in exit costs, including capitalised development expenses, of approximately USD 4.5 million which will be recognised in the third quarter 2024 results.
Background
- Dam Nai Wind is located in the Ninh Thuan province in the southern part of the country and consist of 15 Siemens wind turbine generators with a total capacity of 39 MW.
- Dam Nai Wind Joint Stock Company became a wholly owned subsidiary of Scatec when Scatec Solar Netherlands B.V. acquired SN Power Vietnam Renewables B.V in May 2021.
- Scatec Solar Solutions Vietnam Co., Ltd was initially established in February 2020 as a wholly owned subsidiary of Scatec through the ownership of Scatec Solar Netherlands B.V.
Source: Scatec
