Buyout Firm Actis Is Said to Plan Sale of Lekela Power Stake

Buyout firm Actis LLP is seeking to sell its majority stake in Africa-focused renewable-generation firm Lekela Power, according to people with knowledge of the matter.

Actis is working with Citigroup Inc. to arrange the potential sale of its 60% stake in the Amsterdam-headquartered company, said the people, who asked not to be identified as the matter is still private. The whole group could be worth in excess of $2 billion, the people said.

Lekela’s other investor, Mainstream Renewable Power Ltd., backed by billionaire Kjell Inge Rokke’s Aker ASA, may be a possible buyer, they said, though the process is at an early stage.

Actis, which a spokesman said manages about $15 billion, said last year it plans to focus more on longer-term assets such as energy, infrastructure and real estate than undervalued companies. The company is looking to finalize deals on six African power projects in 2021, it said in May, spending as much as $300 million.

Discussions are ongoing, said the people. Actis and Citi declined to comment. A Lekela spokesperson declined to comment. Mainstream didn’t immediately reply to a text and email seeking comment.

The private-equity firm helped set up Lekela in 2015, and the group has built a 1,300 megawatt portfolio across Egypt, Ghana, South Africa and Senegal, according to its website. Actis, based in the U.K. but with offices around the world, has also targeted the sector in Chile, Brazil, Mexico and India.

Source: Bloomberg