Kalahari Grid Energy Business Plan › Section 12 › Exit Strategy

• Infrastructure-fund sale (primary route). A
  contracted, operating 5 GW platform is a natural target for
  infrastructure and renewable-energy funds seeking de-risked, long-dated,
  inflation- and USD-linked cash flows — the deepest and most active buyer
  pool for this asset class.
• Strategic acquisition. Sale to a global utility
  or IPP consolidator building African scale; the grid-corridor positions
  and hybrid portfolio are strategically valuable.
• Refinancing and dividend recapitalisation. Once
  operational and de-risked, project debt can be refinanced at lower cost
  and longer tenor, releasing equity value ahead of a full exit.
• IPO / infrastructure listing (long-dated
  option). At full 5 GW scale with an operating track record, a
  public listing or YieldCo structure offers exit optionality, subject to
  market conditions.

12.2 Valuation and exit economics

The base case applies an 11x EV/EBITDA exit multiple to
steady-state EBITDA of $444m, an enterprise value of roughly
$4.9bn, consistent with the 10–12x range at which contracted operating
renewable portfolios transact. After settling residual project debt of
about $1.9bn, equity proceeds are the dominant component of the return.
The critical point from Section 7 carries through to exit: at the
base-case $0.055/kWh tariff the equity IRR is only ~7.1% even at an 11x
exit, whereas on the bankable-path tariff it reaches ~15.3%. Exit
multiple expansion helps, but it is the operating tariff — not the exit
assumption — that determines whether this is an infrastructure-grade
return.

Because value concentrates in the terminal event and in the
operating-phase cash yield, equity investors underwrite both a long
build-out J-curve and the successful resolution of the grid-and-tariff
questions. The mitigant is the asset backing: a large, contracted,
operating renewable portfolio has a deep secondary market and tangible
asset value, providing downside protection that a single-project
developer cannot offer.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Kalahari Grid Energy (Pty) Ltd.