SA’s biggest coal miner Exxaro planning to buy the largest solar company

One of South Africa’s biggest coal miners, Exxaro Resources has set out plans to table bids for renewable energy as per the latest news surrounding the company.

Exxaro is now considering bidding for Actis’s BTE Renewables, according to people with knowledge of the matter, News24 reports.

It is now mentioned that Chinese firms are also interested in acquiring the assets, said the people close to Exxaro who asked not to be identified as the information is private. 

At the same time, Actis is seeking about $800 million (R14 billion) for the company and reliable sources confirmed to the news portal.

From Australia to South Africa, companies and governments are looking to expand into cleaner projects in a bid to cut emissions and reduce their dependence on the dirtiest fuel. 

BTE generates 436 megawatts of electricity from its solar and wind-power plants in South Africa and Kenya, according to the company’s website.

While the Cape Town-based website has gathered information from reliable informants, the company Exxaro and Actis declined to comment about the potential deal.

“Deliberations are ongoing and the companies could decide not to proceed with the bidding process. Actis could also retain the asset for longer,” they added.

“South Africa generates the majority of its power from coal and is attempting to accelerate the development of green energy. Companies are also considering their own generation due to the unreliability of supply from Eskom. 

“Actis, which appointed Citigroup to advise on the deal, is looking to cash in on a booming market for new power projects across Africa, where demand for electricity is growing. The London-based private equity firm sold a majority stake in Lekela Power earlier this year.”

Meanwhile, the website also published that on Thursday, Thungela said the assertion that it is considering a bid for Actis LLP’s BTE Renewables is factually incorrect. 

“Thungela confirms that is not considering the acquisition of any renewables business, neither currently nor previously since listing,” the group said.

Main Image: Exxaro/Exxaro Website