JSE-listed Hulisani plans to acquire the entire issued share capital of Red-Cap Investment and Eurocape Renewables for a combined R145.2-million.
Through the subscription of 400 ordinary shares in Red Cap, valued at R118.9-million, and 100 ordinary shares in Eurocape valued at R26.3-million, Hulisani will be able to widen its footprint in the local renewable-energy sector.
Under the terms of the agreement, Hulisani will receive the 5.46% of shares Red Cap holds in the Kouga wind farm, which reached commercial operation in March 2015. Eurocape holds a further 1.21% stake in the wind farm.
The wind farm has a 20-year supply agreement with Eskom.