Mainstream, a global wind and solar company majority-owned by Norway-based Aker Horizons, and Actis, a sustainable infrastructure-focussed investment firm, will sell the Lekela Power platform to Infinity Power and Africa Finance Corporation (AFC). The transaction is valued at an enterprise value of ~$1.5 billion and is expected to generate net proceeds of ~$90 million for Mainstream. Established in 2015 as a 60:40-JV between Actis and Mainstream, Lekela has become one of the continent's largest pure-play renewable power producers in Africa, and owns more than 1 GW of fully operational wind projects. According to Enerdatics’ research, Actis began pursuing the sale of Lekela Power in Feb’22 and entered into negotiations with Infinity Power in Jun’22.
Today’s deal marks the fifth major exit for Actis, and the second deal with Mainstream so far in 2022. In February, the firms realized their investment in Chile-based wind energy developer Aela Energía through a $685 million deal with Innergex Renewable Energy. The ownership structure in Aela at the time of the exit was similar to that of Lekela Power, with Actis owning a 60% stake and Mainstream holding the remaining 40%. Following the transaction, Actis completed three additional exits in April. The firm sold its stake in India-based solar company Sprng Energy to Shell for $1.55 billion and divested its ownership in Brazilian wind power producer Echoenergia to Equatorial Energia for ~$1.4 billion. Actis also realized its investment in Indian renewables company Ostro Energy via a sale to ReNew Power, which is backed by a consortium that includes Goldman Sachs, Canada Pension Plan Investment Board, and Japanese utility JERA. As of deal announcement, Ostro owned 1.1 GW of primarily wind energy assets, of which 850 MW was commissioned.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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