CDC to invest in Mettle’s solar rollout


CDC to invest in Mettle’s solar rollout

Published Date: 2019-06-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

CDC to invest in Mettle’s solar rollout

A consortium headed by the British development finance institution will ultimately hold 40% of Mettle Solar Investments.

Mettle, the investment group unbundled by Tradehold last May, says investors plan to subscribe for shares in its Mettle Solar Investments (MSI) division in a move that will help it roll out its pipeline of solar projects across the continent.

Gridworks Development Partners, a limited liability partnership owned by CDC Group; MLE; Trigen Group; MStead; and MSI CEO Francois van Themaat plan to buy up to 16,493 "B" shares in the solar group over the next nine months for R106.7 million, giving them a 40% stake in the business.

At the moment, Mettle owns 55% of MSI's shares, with Trigen holding 35% and management holding 10%. These will be converted into "A" class shares, which will rank the same as the B shares, except for a preferential right to a return to the holders of the B shares, such as dividends.

MSI designs, installs and maintains commercial and industrial solar photovoltaic systems for private and public users. The new investors are developers and investors in the transmission, distribution and off-grid sectors in Africa. CDC is the UK government's development finance institution, which focuses on building businesses and creating jobs through its investments in Africa and South Asia.

The company's shares gained 14% to R1.05 in thin trade yesterday.

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