Hulisani made an indirect acquisition of 25%, in GRI, a producer of wind towers to the global market for R82.5 million.
Hulisani and Pele Green Energy (Pele) established an incorporated joint venture, Pele SPV13, held equally by each of them;
The joint venture company acquired a 25% shareholding in GRI for R82.5 million giving Hulisani an effective 12.5% equity stake in GRI valued at R41.25 million:
Pele’s 50% shareholding in Pele SPV13 was funded by Hulisani by way of preference share funding for R41.25 million; and
The preference shares were secured by a guarantee by Pele in favour of Hulisani guaranteeing the performance of PGE’s obligations under the Preference Share Subscription, a pledge and cession by Pele of its bank accounts and shares and shareholder loans in Pele SPV13 in favour of Hulisani.
OPERATIONS AND MAINTENANCE
GRI opened its first wind tower manufacturing plant in Atlantis, Cape Town in 2014;
In doing so, 300 jobs were created
GRI has the capacity to provide the global market with over 150 towers per year, some of which are exported;
GRI is the only operational wind tower manufacturing facility in South Africa, creating 340 jobs;
The renewable energy industry in South Africa and on the African continent is a rapidly growing sector; and
Creating manufacturing capability ensures local skills and reduces costs in the long term.
Our hands-on approach at GRI is starting to yield results and, in collaboration with our partners and Government, ensures that there is a manufacturing green economy in South Africa providing at least 40- 60% of locally produced components for the wind farms and creating sustainable quality skilled jobs;
Products were exported during the last financial year;
GRI provides Hulisani with vertical integration into the wind farm supply chain, as well as access to global demand for components for the wind generating industry;
The preference share funding enables further black participation in the manufacturing value chain; and
The plant has the capability to produce other components and with Government policy certainty, has significantly improved export potential.