Actis and Mainstream strike $1.5bln deal to sell Lekela Power

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Actis and Mainstream Renewable Power have struck a deal to sell Lekela Power in a deal that values Africa’s largest renewable energy independent power producer at $1.5 billion. The buyers of the business are Infinity Group, an Egyptian renewable energy firm, and Africa Finance Corporation, a multilateral finance corporation. The transaction is expected to close by the end of the year once the necessary regulatory approvals have been granted.

Actis originally invested $220 million for a 60% stake in the business through Actis Energy 3, with the balance being held by a Mainstream-led consortium that includes three International Finance Corporation-related investment entities, Sanlam, Ascension Investment Management, and Rockefeller Brothers Fund. While a representative declined to disclose the returns the sale earns Actis and Mainstream, it was revealed that the net proceeds accruing to Mainstream (with a net ownership of 13.52%) will be approximately $90 million.

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