Swiss fund manager Susi Partners, on behalf of its Susi Asia Energy Transition Fund (SAETF), has agreed to acquire a 39-megawatt wind farm in Vietnam from Norwegian-based renewable energy company Scatec ASA.
The Dam Nai wind farm, located in Ninh Thuận Province, will become a cornerstone asset of SAETF’s utility-scale renewable energy platform Sustainable Asia Renewable Assets (Sara). SAETF will also take over Scatec’s Vietnam-based operating company, Dam Nai Wind Joint Stock Company, to facilitate further expansion in the country.
Together with the associated operating company, the asset will provide an anchor for the development, construction, and operation of further utility-scale renewable energy projects in nearby regions.
For Scatec, the deal marks its exit from the Vietnamese market. The Scandinavian firm will receive an upfront consideration of US$27 million for its 100% equity stake at completion, with potential for additional earn-out payments of up to US$13 million subject to conditions being fulfilled prior to May 2026.
Scatec CEO Terje Pilskog says his firm decided to exit Vietnam after operating the Dam Nai wind farm since the acquisition of hydro power developer SN Power from the Norwegian Investment Fund for developing countries (Norfund) in 2021.
“We are satisfied with the agreed price and the sale is in line with our strategy to optimize our portfolio and focus on markets where we see further attractive growth opportunities,” Pilskog says. “We are confident that Susi will be a strong owner of the wind farm and will continue to contribute to the renewable energy journey of Vietnam.
Consolidated ownership
Total net interest bearing debt related to the Dam Nai Wind farm was approximately US$28 million at the end of the second quarter 2024, amounting to a transaction enterprise value of up to US$68 million including the contingent earn-out payment, according to Scatec.
The wind farm has additionally generated a cash flow to equity of approximately US$14 million to Scatec since the acquisition in May 2021. Dam Nai Wind Joint Stock Company became a wholly owned subsidiary of Scatec when Scatec Solar Netherlands BV acquired SN Power Vietnam Renewables BV at the time.
The transaction between Scatec and Susi Partners is expected to close within the first half of 2025, subject to customary regulatory approvals. At the Scatec group level, the transaction is estimated to generate an accounting gain at closing of approximately US$8 million on a proportionate and consolidated basis, including a fair value estimate of the contingent consideration.
Following the transaction Scatec will exit all operations in Vietnam resulting in exit costs, including capitalized development expenses, of approximately US$4.5 million which will be recognized in the third quarter 2024 results, the Norwegian firm says.
Sara consolidates ownership of SAETF’s grid-scale renewable energy projects across the emerging markets of Southeast Asia. As the first operating project of the platform, Dam Nai will add crucial scale to the platform and provide access to Vietnam’s growing and increasingly liberalized utility-scale renewables market.
SAETF’s current portfolio of sustainable energy infrastructure projects in Southeast Asia consists of seven investments in Vietnam, the Philippines, Thailand, and Cambodia with a focus on utility-scale renewable energy projects and distributed generation projects on commercial and industrial sites.
In April this year Susi Partners entered into an investment agreement with Singapore-based Alba Renewables to develop utility-scale solar PV and onshore wind projects in the Philippines and support Alba’s growth in Southeast Asia.
