Seriti Resources Concludes The Acquisition Of A 100% Interest In Windlab Africa’s South African Portfolio Of ~4GW Renewables Assets
Seriti Resources Concludes The Acquisition Of A 100% Interest In Windlab Africa’s South African Portfolio Of ~4GW Renewables Assets. Seriti Resources is pleased to announce the conclusion of the acquisition of a 100% stake in Windlab South Africa through its subsidiary Seriti Green, marking a significant step in the development of the company’s renewable energy business. This follows the announcement in August 2022 of the binding transaction agreements to acquire a majority interest in Windlab’s South Africa and East Africa businesses (together, Windlab Africa). The conclusion of the Windlab East Africa portion of the transaction remains subject to anti-trust approval from the Tanzanian authorities.
The advancement of Seriti Green through the transaction to acquire Windlab Africa supports Seriti’s objective of lowering its carbon footprint and ensuring long-term sustainability as a diversified energy producer. Windlab Africa consists of 100% of Windlab South Africa and 75% of Windlab East Africa, the latter portion of the transaction remains conditional. The transaction will see Seriti Green owned by a consortium of strategic shareholders with Seriti Resources holding a 54.19% controlling interest, alongside VennEnergy (15%), RMB (15.41%) and Standard Bank (15.41%) collectively taking up the remaining stake.
As a responsible coal producer, Seriti is conscious of the impact that fossil fuels have on the environment and is committed to playing an active role in helping manage the just transition to a low-carbon economy while balancing South Africa’s energy needs. The timely acquisition supports the government’s calls at the COP27 Climate Change Conference for further investment into green energy sources as part of the imperative to lower global carbon emissions. Mike Teke, Seriti CEO said: “The finalisation of the South African leg of this transaction is a significant milestone for Seriti Green, enabling us to facilitate the decarbonisation of South Africa’s energy grid, provide diversification within our business and support the new chapter of a just energy transition. We are looking forward to a favourable outcome on the East Africa leg, after which our full acquisition of Windlab Africa will be complete”.
Seriti understands the urgent need to find energy supply solutions that will meet current and future energy demands along with the obligation to move towards a lower carbon future. Despite the global acknowledgement of the critical risk posed by climate change the need for a stable power supply continues to grow. Closer to home, we are also aware of the current challenges faced by power utility Eskom, and the impact this has on the country’s economy. The inclusion of renewable energy into Seriti’s existing portfolio of high-quality coal assets will offer long-term financial stability and diversification, provide a solution to Seriti’s own power needs and afford opportunities to help secure the country’s power needs.
Seriti uses 750 GWh of electricity in the process of mining coal that is used to fuel power stations. In line with the commitments made in the MOU signed in October 2021 with Eskom and Exxaro, Seriti will start using renewable wind and solar energy in its facilities through the signing of PPAs for the procurement of renewable energy in 2023. Windlab South Africa currently oversees ~4 GWs of renewable energy projects at different stages of development in South Africa. This acquisition gives Seriti access to a portfolio of existing world-class renewable energy assets with a high return rate, a promising project pipeline and a highly experienced management team.
“Our investment into renewable energy through Seriti Green demonstrates our commitment to sustainably supporting South Africa’s energy needs. We will continue to seek growth opportunities to make a meaningful contribution to reducing the country’s carbon footprint whilst supporting a just energy transition,” said Mike Teke, CEO of Seriti. Seriti is proud to have partnered with Standard Bank, RMB and VennEnergy on this transaction and has confidence in the strength of Windlab Africa’s experienced management team, who will continue to be led by Peter Venn.
CEO of Seriti Green, Peter Venn, commented: “COP27 has seen a recommitment to climate warming targets, and has for the first time indicated the commitment to financial support for adaptation and transition in developing economies. These events provide even more impetus for the development of the renewables sector in South Africa and elsewhere in Africa. Seriti Green is well-positioned and able to play a constructive and growing role in bringing responsible and impactful renewable energy projects to fruition, especially in South Africa’s energy heartland of Mpumalanga. “
