According to a company statement cited in The Namibian, through this investment Stimulus will subscribe for 67,6% ordinary shares and advance a shareholder’s loan to the business.
“The balance of the ordinary shares are owned by Sedgeley Solar Management (Pty) Limited, whose shareholders comprise key members of management and the founding shareholders,” the company said.
According to media, the business model for Stimulus Investments is based on the financing and long-term rental of rooftop solar photovoltaic (PV) systems, which allows clients to install a complete PV system without any capital outlay.
“The target market is primarily corporate and commercial clientele with high-grade properties of long-term relevance,” the investment company stated.
Solar PV systems
Khomas Solar Saver is said to be a newly established special purpose vehicle to focus on the renewable energy sector, particularly providing the installation of rooftop solar photovoltaics (PV) systems to the Namibian market.
It is reported that the company focuses on installations with peak capacity of between 17kWp and 500kWp with a capital outlay ranging between N$350, 000 ($26,000) and N$7 million ($534,720) per single site installation.
Investment in solar PV grows
Stimulus said its investment in Khomas Solar will strengthen the company’s balance sheet in order to take advantage of increased opportunities in the renewable energy sector driven by growing demand by corporates to go green.
“Khomas Solar has a highly competent management team with a unique combination of technical and financial expertise to roll out and manage the company’s business plan.”
When asked about what this move means for the company, the investment company said the transaction has the potential to enhance value for its portfolio and increase its dividend generating capacity.
“Stimulus believes that the company enjoys a first-mover advantage in the financing and rental model of solar PV systems that could position itself strongly in the Namibian market,” the company said.