Solstice Energy — Exit Strategy & Investor Returns
Exit pathways, an indicative return analysis, and the Phase 2 expansion value available to equity investors.
Section 15 · Business Plan
Exit Strategy & Investor Returns
Exit pathways, an indicative return analysis, and the Phase 2 expansion value available to equity investors.
15.1 Exit Pathways
| Exit Mechanism | Optimal Timeline | Probability | Indicative Valuation |
| Sale to Infrastructure Fund | Year 5–7 (post-COD) | High | 8–12x EBITDA or DCF |
| YieldCo / Platform Sale | Year 7–10 | Medium-High | 10–14x EBITDA |
| Strategic Acquisition (Energy Major) | Year 5–10 | Medium | 9–13x EBITDA |
| Secondary PE Transaction | Year 3–5 | Medium | 7–10x EBITDA |
| Hold to Maturity (Dividend) | Year 1–25 | Fallback | IRR-based return |
Table 17: Exit Strategy Options
15.2 Indicative Return Analysis
Based on a Year 7 exit at a 10x EBITDA multiple applied to projected
Year 7 EBITDA of ZAR 142 million, the indicative enterprise value would
be approximately ZAR 1,420 million. After deducting net debt of
approximately ZAR 950 million, the equity value would be approximately
ZAR 470 million, representing a 0.85x multiple on invested equity of ZAR
555 million, or an equity IRR of approximately 22.5% when inclusive of
cumulative dividend distributions received prior to exit. The platform
value of a proven, operating solar asset with contracted revenues is
highly attractive to infrastructure funds, pension funds, and sovereign
wealth funds seeking stable, inflation-linked returns.
15.3 Phase 2 Expansion Value
The Phase 2 expansion to 300 MW, incorporating battery energy
storage, would significantly enhance exit valuations by demonstrating
platform scalability and dispatchable generation capability. A 300 MW
portfolio with storage would command premium valuations from
infrastructure investors seeking large-scale, diversified renewable
energy platforms. Regional replication in Namibia, Botswana, and Zambia
under similar structures would further enhance the platform’s strategic
value.
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 Solstice Energy (Pty) Ltd.