Mainstream Renewable Power and investment firm Actis have decided to sell Lekela Power, an African renewable energy platform, for around $1.5 billion. Lekela Power will be purchased by Infinity Group and Africa Finance Corporation (AFC), subject to regulatory approvals and customary closing conditions. Lekela is a pure-play independent power producer of renewable energy and was founded in 2015.
Actis owns a 60 per cent stake in the platform, with Mainstream Renewable Power Africa Holdings, a group under Mainstream’s leadership, owning the other 40 per cent. Lekela Power operates wind assets with a total capacity of more than 1 GW, including five in South Africa (624 MW), one in Egypt (252 MW), and one in Senegal (159 MW). A total of three million African households receive clean energy from these resources. The platform’s portfolio also offers growth prospects in Ghana, Senegal, and Egypt.
In July 2022, Mainstream Renewable Power and Aker Offshore Wind’s stakeholders decided to merge their companies to establish a new offshore wind company with a 27 GW portfolio. Aker Offshore Wind (AOW), a wholly owned subsidiary of Aker Horizons, would be merged into the Mainstream group on a prior agreement between Aker Horizons and Aker Mainstream Renewables.
REGlobal’s Views: Renewable energy platforms with large portfolios continue to fetch good value in the market as investors and developers focus on quickly expanding their renewable energy capacities. Moreover, Africa is fast becoming an investment hotspot with its significant untapped solar and wind power resources.
