RMBpartnersSeritiwithWindlabacquisition

MEDIA RELEASE

15 AUGUST 2022

 

RMB partners with Seriti to give private power a boost with Windlab acquisition

As part of its efforts to contribute positively to carbon footprint reduction and ensure long-term sustainability, coal producer Seriti Resources will acquire a majority stake in Windlab Africa’s wind and solar-powered assets through its subsidiary, Seriti Green. Windlab Africa consists of 100% of Windlab South Africa and 75% of Windlab East Africa.

RMB is proud to partner with Seriti, one other bank, Ntiso Investment Holdings, and Peter Venn to facilitate this acquisition as shareholders in Seriti Green. RMB’s participation totals approximately R170 million of the total transaction value of R892 million. 

RMB’s participation totals approximately R170 million of the total transaction value of USD55 million (R892 million at an exchange rate of R16.22 to the USD). This is broken down into a 14.5% equity stake in Windlab Africa at a cost of USD5.8 million (~R94.1 million); shareholder and management gearing totalling c. R26m and a 50% participation in the USD6 million bridge loan to Seriti Green, a total of ~R48.7 million.

“The opportunity to partner with Seriti, a long-standing client with whom RMB has become a trusted partner, on this acquisition, is an exciting one. Not only will it help to build out a sustainable renewable energy business in both South and East Africa, but it also forms an integral part of Seriti’s strategy to support a just energy transition.  In addition, as a significant player in the burgeoning private power sector in South Africa, Seriti Green will help alleviate the current electricity supply challenges and reduce our energy deficit,” says Kwabena Malgas, Head: Infrastructure Equity Finance & Investments at RMB.

The acquisition is part of the ‘just energy transition’ strategy that RMB has been actively working on with Seriti and one of its anchor shareholders, as a trusted partner and strategic advisor, since 2016. The aim is to actively contribute toward the South African energy supply deficit, which will widen as coal-fired power plants are decommissioned while creating jobs and reducing carbon emissions. This transaction sees Seriti Green become one of a few large, black- and locally-owned developers that can compete with international renewable power producers.

"Key to this acquisition is RMB’s collaborative and holistic approach. This entrenches us as long-term partners in the business and allows us to deliver a bespoke structuring solution. Our relevant expertise and ensuring the relationship remains central, was fundamental to our role in this transaction for Seriti to become a diversified energy business,” says Sarah Bastiaanse from Principals Investments at RMB.

End

 

Contact:

Kate Kelly l RMB l kate.kelly@rmb.co.za