Scatec ASA, a Norwegian renewable energy solutions provider, recently announced that it has signed an agreement to sell its 39 MW Đầm Nại wind farm and related operating companies in Vietnam. The buyer is Sustainable Asia Renewable Assets (SARA), a utility-scale renewable energy platform under the SUSI Asia Energy Transition Fund (SAETF). This move marks Scatec’s complete withdrawal from the Vietnamese renewable energy market.
According to the terms of the deal, Scatec will receive a full equity upfront payment of $27 million upon completion of the transaction. Additionally, Scatec has the opportunity to receive up to $13 million in additional payments if certain conditions are met before May 2026. Terje Pilskog, Scatec’s CEO, expressed satisfaction with the agreed price, stating that the sale aligns with the company’s strategy to optimize its portfolio and focus on markets with more attractive growth opportunities.
The Đầm Nại wind farm, located in Ninh Thuận Province in southern Vietnam, consists of 15 Siemens wind turbines. It became a wholly-owned subsidiary of Scatec in May 2021 when Scatec Solar Netherlands B.V. acquired SN Power’s Vietnamese renewable energy company. Since the acquisition, the wind farm has contributed significant economic benefits to Scatec. As of the end of Q2 2024, the total net interest-bearing debt associated with the Đầm Nại wind farm was approximately $28 million. Moreover, the wind farm has generated about $14 million in cash flow to equity for Scatec since its acquisition in 2021.
The transaction is expected to be completed in the first half of 2025, subject to relevant regulatory approvals. Upon completion, Scatec will fully exit the Vietnamese market. The company anticipates related costs, including capitalized development expenses, to be around $4.5 million, which will be recognized in the financial statements for Q3 2024.
Scatec’s decision reflects the company’s strategic adjustment in the global renewable energy market. After careful evaluation since acquiring SN Power and beginning operations at the Đầm Nại wind farm in 2021, the company ultimately decided to exit the Vietnamese market. Pilskog emphasized that this decision aligns with the company’s strategic direction to focus on markets with more attractive growth opportunities.
On the other hand, this transaction also highlights the vibrancy of the Asian renewable energy market. SARA, the buyer, is a key platform of the SUSI Asia Energy Transition Fund, and this acquisition will further expand its influence in Vietnam’s renewable energy sector.
Overall, this transaction not only reflects the adjustment of international renewable energy companies in their global strategic layout but also demonstrates the investment attractiveness of renewable energy assets in the Asian region. As the transaction progresses, the market will closely watch Scatec’s development in other regions and the future direction of Vietnam’s renewable energy market.
Brief Summary:
- Scatec ASA signs agreement to sell the 39 MW Đầm Nại wind farm and related operating companies in Vietnam.
- The transaction price includes a $27 million upfront payment, with potential additional payments of up to $13 million.
- The transaction is expected to complete in the first half of 2025, subject to regulatory approval.
- Scatec will fully exit the Vietnamese market to focus on other growth opportunities.
- The wind farm has contributed approximately $14 million in cash flow to Scatec since its acquisition in 2021.
- The transaction reflects strategic adjustments by international renewable energy companies and the attractiveness of the Asian renewable energy market.
