Latest Press Releases

Press Release • 17 Sep 2019




Exxaro is pleased to announce that it has concluded an agreement with Khopoli Investments Ltd (“Khopoli”), wholly owned by the Tata Power Company Ltd (“Tata”), to acquire Khopoli’s 50% shareholding in Cennergi (Pty) Ltd (“Cennergi”) for an amount of R1,550 million, subject to normal working capital adjustments. Post the conclusion of the agreement, Exxaro will have 100% ownership of Cennergi. Conditions Precedent

The agreement will be subject to, amongst others, the normal regulatory approvals customary for this type of transaction.

About Cennergi

Cennergi owns 2 wind farms which were originally bid as part of Window 2 of the Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) namely: - Amakhala Emoyeni Wind Farm situated near Cookhouse in the Eastern Cape with an installed capacity of 134 Megawatts; and Tsitsikamma Community Wind Farm located close to Tsitsikamma in the Eastern Cape with an installed capacity of 95 Megawatts. Rationale for the transaction The acquisition of Tata’s 50% shareholding follows Exxaro’s ambitions of growing its presence in the energy sector.


Both Cennergi’s projects are financed via limited non-recourse funding to the amount of circa 75% of the initial project capital. Outstanding debt is projected to be circa R4.9bn by December 2019, repayable over a 15-year period commencing from 2016; The debt will be excluded from the Exxaro debt covenant ratios as it is limited recourse funding with no additional security from Exxaro. • Projected EBITDA for 2019 is estimated to be circa R850m. “the collaboration between Exxaro and Tata Power over the past seven years to develop these projects to their current status has been commendable and an outstanding success in South Africa’s implementation of its energy strategy. As a South African-based company, Exxaro is pleased with this opportunity to consolidate its interest in this renewable energy asset at a time in South Africa where we need energy security as we respond to increasing negative sentiment towards coal-based electricity generation,” said Mr Mxolisi Mgojo, CEO of Exxaro Resources.


17 September 2019

Sponsor Absa Bank Limited, acting through its Corporate and Investment Banking Division

enter image description here