GRI Wind Towers
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.