STANLIB Asset Management, an investor in sustainable infrastructure in South Africa, has acquired a controlling equity interest in Solareff, an engineering, procurement, and construction company through its STANLIB Infrastructure Fund II. Closing of the transaction remains subject to obtaining the relevant regulatory approvals.
Solareff is also the controlling shareholder of GridCars, a company that provides electric vehicle charging infrastructure in South Africa.
Andy Louw, Co-Head of the STANLIB Infrastructure Fund II, said, “We are proud to partner with Solareff and believe that our investment in Solareff, particularly through our PPA offering, can make a significant social and economic impact in South Africa by allowing C&I clients access to more reliable power, at competitive tariffs. Importantly, it contributes to the reduction of the carbon footprint of power generation. STANLIB is uniquely positioned to help Solareff continue its growth journey in the C&I power sector, across South Africa.”
In addition to the acquisition of Solareff, STANLIB has also established Solareff Green, a new entity that will offer capex-free energy solutions to C&I customers through PPAs. Solareff Green will fund and own renewable power generation and/or storage facilities, selling its generated power to customers.
According to Mercom’s 1H and Q2 2023 Solar Funding and M&A Report, There were 48 solar M&A transactions in 1H 2023 compared to 53 transactions in 1H 2022. The largest deal was by Brookfield Renewable, which agreed to acquire Duke Energy’s unregulated utility-scale commercial renewables business in the U.S. for approximately $2.8 billion.
Recently, Virya Energy, a company active in the development, financing, construction, and operation of renewable energy production sources, acquired a majority stake in Singapore-based renewable electricity generation and storage development platform Constant Energy through a combination of primary investments and secondary shares from Olympus Capital Asia, a middle-market investment firm focused on Asia. This deal is expected to significantly boost Virya’s solar and Asian plans.