South African investment holding company Reatile Group has agreed to acquire a 20% interest in German renewable energy company Juwi.
The company said in a press release it formally entered the agreement in April, without specifying the sum it will invest in the transaction.
The operation is said to allow Reatile to expand its investments the renewable energy sector in South Africa, where Juwi is currently building four solar power plants with a combined capacity of 250 MW under the REIPPPP program. “The Reatile Group is interested in investing in megawatts throughout the continent,” said Reatile chairman, Simphiwe Mehlomakulu. “We want to make sure that for every rand we make in fossil fuel; we make the same rand in renewables – so that when I die and leave this world, we have a neutral carbon footprint.”
The company has also revealed that, during the renegotiations of the PPAs of the REIPPPP scheme during 2018, the Department of Energy imposed new requirements relating to active black shareholding in the special purpose vehicles owning the projects. On its webpage, Reatile defines itself as a 100% black owned and operated investment holding company. “It is a Level 1 B-BBEE contributor, with 27.98% black woman ownership, and a procurement recognition level of 135%,” the website states.
“juwi subsequently engaged with the lead equity on the three projects, Old Mutual, and we have given them the commitment that we will be at least 40% black owned and at least 50% of that ownership will be through an active black industrialist shareholder,” the company further explained in yesterday’s statement.
Reatile has also revealed that it may get an equity stake in Juwi’s O&M unit in a separate transaction.
Source: pv magazine