Red Rocket of South Africa hires Goldman to explore sale option
Red Rocket Pty Ltd., a South African independent power provider, hired Goldman Sachs Group Inc. to advise on the next steps for the closely held business — including a possible sale.
Shareholders of the Cape Town-based company “have decided to explore strategic options,” for the business, Chief Executive Officer Matteo Brambilla said by email.
Red Rocket, whose backers include French infrastructure and energy investor STOA and Netherlands lender FMO, has invested an estimated $1 billion in renewable-energy projects across Africa, according to the company’s website.
The group raised $160 million from investors last year, and is currently constructing another 750 megawatts of projects to add to the portfolio.
The firm is one of a string of independent South African electricity providers to have sprung up in recent years, looking to exploit a gap in the market left by state-owned Eskom Holdings SOC Ltd., which has long struggled both financially and to keep the lights on.
Further deregulation of the country’s power sector is expected to help them grow in stature, especially as more people look for better options than relying on the government-owned group.
