July 5, 2022

Dubai Week

Complete Dubai News World

The Emirati-Egyptian consortium buys African Legola for renewable energy

The Emirati-Egyptian consortium buys African Legola for renewable energy

The consortium, which includes Abu Dhabi’s Mazdar and Egypt’s Infiniti Energy, is expected to buy a majority stake in Legela Power from Actis Direct Investment, valued at nearly $ 1 billion.

The deal, one of South Africa’s largest renewable energy deals, has attracted interest from around the world, including China’s state-funded CNIC and Africa-based energy company Global. ) British Group, Chinese oil company Synobek, South African coal company Charo et al.

The deal will give Mubadala-owned Mazda the number one spot in South Africa, with analysts and bankers expecting it to be the next major hub for renewable growth after Asia due to prolonged exposure to sunlight even in winter.

The presence of the “Muster” company is so far large in the Middle East, but first evidence said that it is looking for opportunities for large-scale acquisitions in new projects and existing projects.

“The deal is nearing completion, but a lot of regulatory approvals are still needed,” a source said.

A second source said the deal could be announced “in the coming weeks … soon”.

Both sources declined to comment on the estimated value.

A third source has publicly stated that the deal could range from $ 900 million to $ 1 billion, considering Lekela’s investment in 1,000 MW of wind power assets across South Africa, Egypt and Senegal, and 225 MW of wind power development in Ghana. More direct bargaining.

Another deal

Meanwhile, Actis, Africa’s largest private equity firm, has put up for sale another African-based company, biotherm Energy, a renewable energy company.

The second source, Bioderm Energy, has solar and wind power plants in South Africa and Kenya that generate over 400 MW, but its order list is higher than that of Legola.

See also  Nissan of Arabian Automobiles achieved 32% growth in the first half of 2021

“The door to submit non-binding offers related to biotherm will be closed next week,” the source said.

Analysts and bankers say companies are seeking to raise money from renewable assets in South Africa and invest in new projects as President Cyril Ramaphosa’s government seeks to revive the country’s renewable energy movement.

South Africa, the world’s 12th largest emitter of greenhouse gases, is under pressure to reduce its reliance on old and frequently broken coal-fired power plants, causing power outages when the economy suffers.

(Reuters)