Renewable energy company Scatec is selling its stake in a 258MW solar power plant in South Africa to a fund managed by Standard Bank’s asset management arm.

Scatec said it has agreed to sell its 42% stake in the Upington solar plant for ZAR979m (€52.4m) to Stanlib Asset Management’s Stanlib Infrastructure Fund II fund.

Nordic development finance institution Norfund is also selling its 18% equity share to Stanlib as part of the deal.

Scatec will continue to provide operations and maintenance and asset Management services to the plant.

Scatec CEO Terje Pilskog, said the transaction is in line with the company’s strategy to optimise its portfolio and will release capital for new investments in renewable energy.

Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange. The company entered South Africa in 2010.

Pilskog said: “South Africa remains a focus market for us, and we will continue to build scale through new investments, including the Kenhardt project under construction and the new Grootfontein project secured in the fifth bidding round.”

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