Exxaro to take full ownership of independent power producer Cennergi
The resources company will acquire an additional 50 percent shareholding in Cennergi for R1.55 billion.
South Africa-based diversified resources company Exxaro Resources said it has concluded an agreement with Khopoli Investments, a subsidiary of Tata Power Company, to acquire Khopoli’s 50 percent shareholding in independent power producer Cennergi for R1.55 billion.
The deal will give Exxaro 100 percent ownership of Cennergi and is in line with Exxaro's ambitions of growing its presence in the energy sector.
Cennergi owns the 134 MW Amakhala Emoyeni Wind Farm and the 95 MW Tsitsikamma Community Wind Farm in the Eastern Cape.
“The collaboration between Exxaro and Tata Power over the past seven years to develop these projects to their current status has been commendable and an outstanding success in South Africa’s implementation of its energy strategy,” said Exxaro CEO Mxolisi Mgojo (pictured) in a statement on Tuesday.
“As a South Africa-based company, Exxaro is pleased with this opportunity to consolidate its interest in this renewable energy asset at a time in South Africa where we need energy security as we respond to increasing negative sentiment towards coal-based electricity generation,” Mxolisi added.
Exxaro is among South Africa's biggest coal miners and supplies coal to the export market, as well as to power utility Eskom, which supplies more than 90 percent of the country’s electricity.