European energy producer Statkraft and the Norwegian Investment Fund for Developing Countries (Norfund) have completed the restructuring of SN Power with an emphasis on hydroelectric power development.
The two entities have cooperated in cultivating renewable energy globally for more than a decade via SN Power (Statkraft Norfund Power Invest AS), though the recently finalized restructuring “takes the cooperation to the next phase”.
Per the agreement,
- SN Power’s existing portfolio in South Asia and South America is united and operationally integrated with Statkraft’s other assets. Statkraft’s share of this part of the portfolio will increase from 60 to 67 percent, while Norfunds share decreases from 40 to 33 percent. Over time, Norfund’s intention is to further reduce its stake.
- A new company called SN Power will be created, with geographical focus on Southeast Asia, Africa and Central America. Initially, Statkraft and SN Power will own SN Power 50% each. The business in Africa and Central America will be performed through the subsidiary Agua Imara, where BKK and TronderEnergi are minority shareholders. Statkraft and Norfund’s intention is to reduce their shareholdings in SN Power to approximately 40 percent each, and during a 1-2 years period invite financial investors into the company. In that context, BKK and TronderEnergi will be invited into SN Power as shareholders.
- A separate project and construction unit will be established in Statkraft International Hydropower, which will be a preferred supplier of project execution services to all international hydropower projects within Statkraft and SN Power.
“This agreement confirms the long-term strategic cooperation between Norfund and Statkraft, BKK and TronderEnergi to harness and develop hydropower resources in developing countries,” Norfund managing director Kjell Roland said. “The new platform for cooperation will scale up our joint effots benefitting the global fight against climate change, as well as the fight against poverty.”
The agreement also ends Nordund’s options to sell its shares in SN Power to Statkraft in 2014 and 2015, replacing them with a revised put/call option program covering the period between 2017 and 2023.
“Statkraft’s ambition is to strengthen its position as a leading international company within hydropower,” Statkraft President and CEO Christian Rynning-Tonnesen said. “The agreement with Norfund will further strengthen our industrial role and utilize the full hydropower competence within the Statkraft Group even better.”
HydroWorld.com first reported the proposed restructuring this past June. The companies described the plan in a stock exchange notice published in December.
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