November 11, 2008
Statkraft to Purchase 10% of Norfund Stake in SN Power
Norwegian electricity generation company SN Power's owners Statkraft and Norfund have reached an agreement, pursuant to which, Statkraft will purchase 10% of Norfund's shares in SN Power for NOK1.1 billion.
Following the purchase, Statkraft will become the majority owner in SN Power, with a 60% share, while Norfund's share is reduced to 40%. In parallel, Statkraft and Norfund have agreed to establish a separate company which will focus on hydropower development in Africa and Central America.
Under the agreement, Statkraft also has the right to exercise a 7% call option at the latest by 2015 and increase their ownership stake to 67%. As per the agreement, Norfund also has the right to exercise a put option for its remaining 40% within the same timeframe or sell out up to 20% of its remaining shares in SN Power to a third investor by 2010.
Bard Mikkelsen, Statkraft's CEO, said: "The increased shareholding in SN Power supports Statkraft's ambition to develop its role as a global niche player within hydropower and other renewables. SN Power's market positions in Asia and South America gives a strong starting point for long-term, global positioning."