UK investment company Actis has confirmed the sale of renewable energy producer Lekela Power. The sale represents “Africa’s biggest renewable energy deal” to date.
The renewable energy producer is a joint venture established in 2015 with Mainstream Renewable Power to develop a portfolio of clean energy plants in Africa. The two investors held a 60% and 40% stake, respectively. Their divestment is announced seven years after they initially invested in Lekela Power.
The deal will be finalized after regulatory approvals and the fulfillment of customary closing conditions. It is announced three months after Actis agreed to divest from Spring Energy, one of India’s largest renewable energy companies.
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Despite these announced divestitures, Actis will continue to have a significant presence in the global sustainable energy sector. Last year, the firm announced the final close of its fund Actis Energy 5 at US$6 billion. It also closed three major energy investments in Latin America, specifically in Brazil, Chile, and Mexico.
“The planned exit reflects the successful completion of the partnership strategy for Lekela, following a holistic approach to value creation,” said Actis.
Lekela Power has a portfolio of 1 GW of fully operational wind assets, including five operational wind farms in South Africa (624 MW), one operational wind farm in Egypt (252 MW), one operational wind farm in Senegal (159 MW) and development opportunities in Ghana, Senegal and Egypt.
“The acquisition of Lekela is a key milestone for Infinity, as it not only becomes the largest acquisition of its kind in the continent’s history, but also signifies the continued growth and expansion of Infinity’s efforts to create a sustainable supply of clean, green energy,” said Nayer Fouad, Infinity’s co-founder, president and CEO.
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