Infinity Group and Africa Finance Corporation are buying Africa’s largest renewable-energy independent power producer (IPP) from Actis and Mainstream Renewable Power in a $1.5bn (€1.48bn) deal.
Mainstream and Actis have agreed to sell the 1GW Lekela Power platform which includes five operational wind farms in South Africa, an operational wind farm in Egypt and another in Senegal, as well as development opportunities in Ghana, Senegal and Egypt.
Mainstream, which is majority-owned by Aker Horizons, said it expects to generate $90m of net proceeds from the deal which gives Lekela Power a $1.5bn enterprise value.
Mohamed Ismail Mansour, co-founder and chairman of Infinity Group, said: “Our acquisition of Africa’s largest independent power producer in the renewables sector is a major milestone in our strategy for growth across the African continent.”
Samaila Zubairu, president and CEO of AFC said: “This acquisition marks an important milestone in our journey to build a 3GW renewable-energy platform.
”We are focused on reducing Africa’s massive energy deficit through expanding the quantum of electricity using the various energy sources available throughout the continent.”
Nayer Fouad, co-founder and CEO of Infinity Group, said: “The acquisition of Lekela is a key milestone for us at Infinity as it not only becomes the largest such acquisition in the history of the continent but also signifies the continuous growth and expansion of Infinity’s efforts to create a sustainable supply of clean green energy.”
Lekela Power was set up in 2015 as a joint venture between Actis which held a 60% interest, and a Mainstream-led consortium called Mainstream Renewable Power Africa Holdings (MRPAH) holding the remaining 40% stake.
Mary Quaney, group CEO at Mainstream Renewable Power, said: “There has never been a more critical time to accelerate the global transition to renewable energy, for the health of both our planet and our communities.
“Much of Africa is acutely vulnerable to climate change and we are proud to have worked with Actis, as well as the communities, governments, project lenders, equipment suppliers and contractors across Africa, to deliver over 1GW of operational wind power that will continue to have a positive impact for decades to come.”
Lucy Heintz, partner and head of energy infrastructure at Actis, said: “This exit highlights the hands-on approach we take at Actis as builders and operators of leading energy platforms of scale, delivering positive impact.”
Shami Nissan, partner and head of sustainability at Actis, said: “It’s a testament to the work we have done in partnership with Lekela’s management team that Lekela was rated one of the highest performing companies globally by Sustainalytics, under its ESG Risk Rating assessment process in November 2021.
”In particular, Sustainalytics noted Lekela’s strong management of land use and biodiversity issues, business ethics, occupational health and safety and community relations.”
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