Signing of the papers by Simphiwe Mehlomakulu and Greg Austin
juwi Renewable Energies has concluded a second investment transaction with Reatile Renewables, with Reatile now owning a 43% equity stake in juwi’s solar photovoltaics (PV) Operations and Maintenance (O&M) business.
The agreement follows the conclusion of a previous deal between juwi and Reatile earlier this year, in which Reatile took up a 20% shareholding in one of juwi’s solar PV engineering, procurement and construction (EPC) companies.
Reatile Group chairperson Simphiwe Mehlomakulu says the deal deepens Reatile’s investment and involvement in the renewable energy sector in South Africa and makes for a very attractive service offering in the O&M sector.
“Through the O&M transaction, we intend to operate and maintain projects, not only for juwi, but also for other players in the market place,” he says.
Reatile has taken a considerable equity stake in juwi O&M, which, together with an existing 8% community stake, results in juwi O&M being a 51% black-owned company, he points out.
“The new structure represents all the aspects of the social compact in South Africa, as well as the competitive pricing and technology advances that juwi is already known for. We believe this will be a very attractive proposition for existing and potential clients operating in the renewable space,” says Mehlomakulu.
juwi MD Greg Austin says the deal bodes well for future growth in the renewables sector.
“We are pleased that Reatile has taken up a substantial stake in our O&M subsidiary which, during 2020, will increase its South African market share significantly,” he says.
“O&M of renewable energy assets is a critical component of ensuring reliable delivery of clean energy and remains a powerful avenue for sustainable job creation in often remote areas. This investment and the earlier EPC deal sets the stage for a deeper relationship with Reatile, in terms of their participation in our projects in South Africa and elsewhere on the continent.”