- AIIM bids for 60% of Lekela Power
- Globeleq considers bidding for the stake
- Chinese groups also show interest in the firm
The African Infrastructure Investment Managers (AIIM) has submitted an indicative bid for a 60% stake in Lekela Power. The company is one of Africa’s largest renewable energy companies, worth $2 billion. According to some sources and two people with knowledge of the deal, Lekela’s majority shareholder, private equity firm Actis, is expected to shortlist bidders after receiving indicative offers.
Mainstream Renewable Power, which owns the remaining 40% of Lekela, has first dibs on Actis’ stake. However, according to the sources, it is unlikely to exercise these and may also sell its stake. “There’s a lot of interest from various bidders,” one of the sources said, adding that there weren’t many renewable firms of Lekela’s size on the continent, with the group potentially worth $2 billion.
All four sources said that Africa-focused power firm Globeleq, 70% owned by British government development finance institution CDC Group, was also considering bidding for the stake. According to one of the sources, several Chinese groups have expressed interest in the asset. According to the first source, they included state-owned China Guangdong Nuclear Power, CNIC, Sinopec, and SPIC. However, it was unclear whether Globeleq or the Chinese firms had made bids.
Actis hired Citi last year to sell its stake in Lekela, which operates seven wind power projects in South Africa, Egypt, and Senegal, with another in Ghana under development, according to several sources.