Exxaro Resources, through its wholly owned subsidiary Cennergi Holdings, has entered into binding agreements with Acciona Energía to acquire majority stakes in two large-scale operational renewable energy assets.
The purchase price for the transaction is expected to range between R1.7 billion and R1.8 billion, which Exxaro will fund using existing cash reserves and undrawn facilities.
Read the Sens here.
The move is a major milestone in accelerating the execution of Exxaro’s sustainable growth and impact strategy, aimed at strengthening its position as a diversified natural resources champion.
Acquired assets and capacity
The acquisition includes majority stakes in two operational projects with a combined gross capacity of 213MW:
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• The 138MW Gouda Wind Farm near Drakenstein in the Western Cape.
• The 75MW Sishen Solar Photovoltaic Farm near Sishen in the Northern Cape.
Both assets were procured under Bid Window 2 of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). They sell electricity to Eskom under 20-year take-or-pay Power Purchase Agreements (PPAs), which are guaranteed by the National Treasury.
The transaction also includes the company responsible for the operation and maintenance (O&M) of both assets.
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Strategic rationale
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The acquisition will significantly expand Exxaro’s operational base, increasing Cennergi’s net operating capacity by 117MW to approximately 317MW.
When combined with projects currently under construction, Cennergi’s total net capacity is expected to reach approximately 497MW at closing.
Exxaro highlighted that the purchase will enhance stable, predictable, and de-risked earnings through the long-term, treasury-backed PPAs.
The transaction is anticipated to close in the first half of 2026, subject to customary approvals from bodies such as the Competition Commission and the South African Reserve Bank.
Standard Bank and Absa Corporate and Investment Bank provided financial advisory support for the transaction.
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