Mainstream Renewable Power and Actis have struck a deal to sell Lekela Power to Infinity Group and Africa Finance Corp. (AFC).
The companies did not disclose the value of the deal. The agreement is subject to regulatory approval and customary closing conditions.
Bloomberg, in June, reported Lekela was valued at around $1.8 billion.
Lekela began in 2015 and has more than 1 GW of wind power in Egypt, Senegal and South Africa.
Actis has a 60% stake in LEkela, while Mainstream Renewable Power Africa Holdings has the remaining 40%.
The statement said the sale “reflects the successful culmination of the parties’ partnership strategy for Lekela”. This follows a “comprehensive value creation approach”.
Actis partner and head of energy infrastructure Lucy Heintz said Lekela was in a strong position. The company is ready for “its next phase of growth as an acknowledged sustainability leader supplying much-needed clean energy to communities across Africa, building on our Net Zero commitment”.
Lekela has five wind farms in South Africa, with 624 MW. It also has one in Egypt with 252 MW and one in Senegal with 159 MW. It is working on development plans in Ghana, Senegal and Egypt.
Mainstream CEO Mary Quaney said the company had a vision of a world driven by renewable energy. “Together with our strategic shareholders Aker Horizons and Mitsui, we are well positioned to lead and truly accelerate the transition to renewables in South Africa, across the African continent and in markets globally.”
AFC president Samaila Zubairu said it was working to build a renewable energy platform of 3 GW.
“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,” Zubairu said. “Working together with our partner, Infinity, we aim to more than double the capacity of our joint operating assets over the next 4 years, which stands at 1.4 GW after the Lekela acquisition.”
Infinity CEO and co-founder Nayer Fouad described the acquisition as a key milestone. “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.”
Infinity is a joint venture of Infinity Energy and Abu Dhabi’s Masdar.