Hydropower developer SN Power announced it will take a 40.65 percent stake in Brazilian renewable power company Desenvix. The Norway-based renewables firm also will take a stake in a Zambia-based hydropower company.
The deal with Desenvix will see SN Power form a JV partnership with Desenvix's current owners Jackson and Funcef to focus on further hydropower development in Brazil, SN power reported.
The transaction represents an investment for SN Power of around US$440 million. Closing of the transaction is expected to take place during the next six months, pending approval from Brazilian regulators.
Desenvix, the power generation arm of the Brazilian engineering company Engevix, has a portfolio of renewable energy assets of 162-MW in operation, 176-MW under construction, as well as a large portfolio of projects under development of about 1,600 MW. The assets are mainly hydropower, but also include two wind farms and a biomass plant under construction. The transaction also includes Desenvix's 50 percent shareholding in Enex, a company specializing in operation and maintenance of small and medium sized hydroelectric plants.
In other news, SN Power ACA Holdings of Singapore has been granted approval by Zambia to acquire 51 percent equity in Lunsemfwa Hydropower Company.
Wanda Gorge Investment, which owned 99 percent before the transaction, will retain a 49 percent stake, media reported.
Lunsemfwa Hydropower Company presently generates 50 MW.
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