Infrastructure fund manager AP Moller Capital is acquiring a South African renewable energy developer and independent power producer.
The AP Moller-managed Emerging Markets Infrastructure Fund II (EMIF II) is investing an unspecified amount to acquire Mainstream Renewable Power South Africa from Mainstream Renewable Power.
Mainstream South Africa, which was set up in 2009, holds 148MW of operating and under-construction assets, as well as 351MW of projects ready to start building. The company also controls a development pipeline of around 11.6GW across solar, wind and battery storage opportunities.
Following completion, AP Moller said it will partner with the existing management team to expand Mainstream South Africa’s operating portfolio, grow its energy trading business and support the company’s next phase of development.
Julie Berg, CEO of Mainstream Renewable Power, said: “As Mainstream Renewable Power focuses on fewer markets, the South African business will benefit from an experienced infrastructure investor with the resources and expertise to support its development.
“We are confident that the strong and capable team in South Africa, together with AP Moller Capital, is well-positioned to develop the portfolio and deliver on attractive projects in the pipeline.”
Jens Thomassen, partner at AP Moller Capital, said: “Mainstream South Africa is a high-quality business with an experienced management team, a proven track record and one of the country’s largest renewable energy development pipelines.
“As power demand and the need for new generation capacity continue to grow, this investment strengthens our energy transition strategy and supports our ambition to build a leading independent power producer in South Africa.”
The acquisition follows AP Moller Capital’s prior investments in Africa, South Asia and Southeast Asia. These include Lumika Renewables in South Africa, Cabeólica in Cabo Verde, Eranove in West Africa, Impala Energy in Nigeria, East Africa Infrastructure Platform in Kenya, Verdant Energy in Southeast Asia and a pending investment in India-based Rays Power Infra.
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