Seriti Resources Holdings, a leading coal company led by South African business executive Mike Teke, has completed the acquisition of a 100-percent stake in Windlab South Africa, giving it access to 4,000 megawatts of renewable energy projects in the country as part of its expansion and energy transition plans.
“The finalization of the South African leg of this transaction is a significant milestone for Seriti Green,” Mike Teke, CEO of Seriti Resources, said, adding that the deal will allow the coal company to facilitate the decarbonization of South Africa’s energy grid, provide diversification within our business, and support the new chapter of a just energy transition.
Concluded by Seriti Green, the renewable energy unit of Seriti Resources, the transaction comes nearly four months after the coal producer announced plans to invest $730 million in the construction of a 450-megawatt wind farm in Mpumalanga in eastern South Africa.
Windlab Africa is the African division of Windlab Pty Ltd, an Australian wind farm operator and project developer in charge of 23 projects totaling 3.5 gigawatts in various stages of development across Africa.
Prior to the transaction, Windlab Africa owned a 100-percent stake in Windlab South Africa and a 75-percent stake in Windlab East Africa.
With the completion of the deal, leading South African banks RMB and Standard Bank now each hold a 15.41-percent stake in Seriti Green, while VennEnergy owns a 15-percent stake and Seriti Resources owns 54.19 percent of the company.
As a result of global pressure to reduce the production of fossil fuels and the push for cleaner, more sustainable energy sources, Seriti Resources, which produces about 50 million tonnes of thermal coal, strategically entered the renewable energy sector.
The addition of Windlab South Africa to Seriti Green’s portfolio of projects is consistent with the company’s goals to establish a renewable energy company in the next 10 years with revenue on par with Seriti Resources’ coal business.
The group disclosed that its medium- to long-term strategy is to generate attributable profits that are roughly equivalent across both segments of the market.