News 2019

Quarter 2, 2019

MCGF II and South Africa-based Rand Merchant Bank agree to participate in a recapitalisation of Vox in partnership with management in September 2019, to support fiber rollout outside of South Africa’s main cities and to the country’s small businesses.

Metier Sustainable Capital Practice partners with water treatment and wastewater treatment business, Tecroveer. Tecroveer has a successful track record through diversifying its offerings to include potable water solutions and industrial water treatment in addition to undertaking research, development and manufacturing of related equipment.

Quarter 1, 2019

Start of operations of the Kathu Solar Park: A 100 MW Concentrated Solar Plant and one of South Africa’s largest renewable energy projects.

Metier is pleased to announce that start of commercial operations on 30 January 2019 for the 100 MW Kathu Solar Park project (KSP) in which Metier, via its sustainable capital funds, partnered with independent power producer Engie.

KSP is a state-of-the-art Concentrated Solar Power (CSP) plant with parabolic trough technology and equipped with a molten salt storage system that allows for 4.5 hours of thermal energy storage to provide reliable electricity in the absence of solar radiation and during peak demand. The KSP site covers approximately 4.5 km², with 384,000 solar collector mirrors.

The project is funded by a mixture of debt and equity provided by the shareholder consortium and a club of South African banks. KSP was the largest project-financed transaction in South Africa in 2016. The project will sell power to the Off-Taker under a 20-year power purchase agreement and will provide clean and reliable energy to the national power grid, equivalent to 179 000 homes or about 7.4% of the Northern Cape’s energy use. In addition to this, it is estimated that the project will save six million tons of CO² over 20 years. As a R12 billion investment, built with 45% local content, the project has already made a significant contribution to the South African economy and will continue to foster local development during operations. At peak employment there were 1 700 workers on site and 42% of the workforce was hired from the local community. The plant will permanently employ 81 people during operations.

KSP will further support local business through the sourcing of services from local entrepreneurs. The project has also implement a socio-economic development programme in the district and has established the locally-owned Kathu Solar Park Trust, which owns 2.5% of the project.

Co-investors, alongside Metier, include the FMO, the Dutch development bank and DEG, the German investment and development company. Metier, DEG and FMO were involved in the project prior to it being bid into the Department of Energy’s renewable energy procurement programme and played an active role in the bid submission and in management during construction, including ensuring adherence to best practice environmental and social standards.

KSP won the “The Deal of the Year” category at the fourth edition of the African Utility Week Power Awards on 2017 and the IJ Global Award 2016 for the African renewable project in 2016 and we look forward to the project continuing to be an important contributor to the energy sector and economy in the years to come.

On 7 November 2018, shareholders were informed of a firm intention, whereby MCGF II had made an offer to acquire 100% of the issued shares of Master Plastics, other than those held by the CEO, Manley Diedloff. The transaction implemented by way of a scheme of arrangement and a shareholder meeting was convened on 20 December 2018 whereby 100% of those shares present and voting voted in favour of the proposed transaction. The transaction has fulfilled all conditions precedent and the transaction closing date was 4 February 2019.

© 2019 Metier. All Rights Reserved. Metier’s Promotion of Access to Information manual is available on request. Metier Private Equity (Pty) Ltd, Lereko Metier Capital Growth Fund Managers (Pty) Ltd and Lereko Metier Sustainable Capital Managers (Pty) Ltd are licenced Financial Services Providers (Licence No: 44882, Licence No: 23261 and Licence No: 44430 respectively) in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002 and have Conflict of Interest Management Policies as required in terms of Section 3A of the General Code of Conduct.
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