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June 3, 2022

Masdar, Infinity Energy likely to acquire significant stake in Lekela Power

The deal worth nearly $1bn is said to be one of the largest in the south African market.

Abu Dhabi’s Masdar and Egypt’s Infinity Energy as a consortium are planning to acquire significant stake in Lekela Power from the private equity firm Actis, Reuters reported.

Citing three sources familiar with the development, the new agency said that the deal could be worth nearly $1bn.

The deal, which is said to be one of the largest in the South African renewable segment, has drawn interest from other companies including Chinese state fund CNIC as well as Sinopec and African firms Globeleq and Exxaro.

If the deal is successful, then it is expected to help Masdar establish its presence in the South African market.

According to the first source, Masdar is focusing on acquiring greenfield and brownfield projects.

One of the sources who is directly linked to the sale, told the news agency the deal is nearly finalised and requires regulatory approvals.

The second source further added that the deal could be soon announced in the coming weeks.

Reuters said that the three firms Actis, Masdar, and Infinity Energy did not immediately respond to emails seeking comment.

In another development, Actis has reportedly decided to sell BioTherm Energy (BTE) Renewables, an Africa- focused renewable company.

According to the second source, BTE Renewables has more than 400MW solar and win capacity in South Africa and Kenya.

BTE Renewables is said to have bigger pipeline than Lekela.

“The last date for non-binding offers for BioTherm will close next week”, according to the source. In April this year, Actis agreed to divest Solenergi Power Private Limited to Shell Overseas Investments for a consideration of $1.55bn.

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