Juwi Renewable Energies has winded up with its second investment transaction with Reatile Renewables, who have taken a 43% equity stake in juwi’s solar PV Operations & Maintenance business.
The agreement pursued with the completion of a previous deal between juwi Renewable Energies and Reatile Renewables earlier this year, in which Reatile took up a 20% shareholding in one of juwi’s solar PV EPC companies.
Simphiwe Mehlomakulu, Chairman of Reatile Group mentioned that the deal is going to deepen Reatile’s investment and involvement in the renewable energy sector in South Africa, and makes for a very apealing service offering in the O&M sector: “Through the O&M transaction we aim to operate and maintain projects, not only for juwi, but also for other players in the market place. Reatile has taken a significant 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.
“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.”
Greg Austin, Managing Director of juwi, said that the deal bodes well for future expansion in the renewables sector: “We are delighted that Reatile has taken up a substantial stake in our O&M subsidiary which, during 2020, will increase its South African market share undoubtedly.
“Operations and maintenance of renewable energy assets is an important component of ensuring decisive delivery of clean energy and remains a strong avenue for sustainable job creation in often remote areas.”
“This investment and the earlier EPC agreement set the level for a extend relationship with Reatile, with regards to their participation in our projects in South Africa and elsewhere on the continent,” Austin added.