Actis to buy majority stake in Middle East-Africa solar platform Yellow Door Energy

 Actis to buy majority stake in Middle East-Africa solar platform Yellow Door Energy

Actis, an alternative investments group that is slowly transforming itself into an infrastructure and real estate-focused private equity firm, said Friday it has signed a definitive transaction to acquire a controlling stake in Yellow Door Energy.

Yellow Door Energy is a distributed Commercial & Industrial (C&I) solar platform in the Middle East and Africa (MEA) region with around 200MW of secured production capacity.

It is one of few operating C&I portfolios of scale in the region with 106MW in operation and 104MW awarded and under construction. The company has key existing relationships with over 50 companies, including blue-chip businesses such as Nestlé, Majid Al Futtaim, DHL, Mondelēz and Unilever.

Energy in the Middle East is heavily dependent on fossil fuels with over 90% of the total supply dependent on them.

The transaction will be funded through Actis’ Energy 5 Fund, Actis’ latest energy fund that garnered $6 billion of investable capital including co-investments last October. The team has invested in over 70 renewable energy projects to date, generating approximately 11GW of renewable energy globally.

Jeremy Crane, Founder and CEO of Yellow Door Energy, said: “This investment from Actis, complemented by increased investments from our current shareholders, Mitsui & Co., Ltd., APICORP, and IFC, is an attestation to the success of our company. This investment will enable us to scale geographically through both direct and M&A activities.”

This deal follows three other major energy investments by Actis in Latin America – the largest independent renewable energy platform in Brazil, the largest renewable energy IPP (independent power provider) in Chile and a leading IPP in Mexico.

Last month, it also set up a power generation platform to invest in Southeast Asia and parts of South Asia, and closed its first transaction. The new platform, Bridgin Power, completed its first investment by acquiring a 49% shareholding in a 220MW combined cycle gas turbine power plant in the Bhola region of Bangladesh.

The PE firm bought the stake from diversified Indian conglomerate Shapoorji Pallonji group.

In April, Actis sold its India renewable energy platform to Shell for $1.55 billion.

It had also announced an investment in Omega Energia, the largest publicly listed pure-play renewable energy generation company in Latin America and unveiled a Central and South Eastern Europe renewables platform.

Actis was advised by HSBC as sole financial advisor and Clifford Chance as international legal counsel on the transaction with Yellow Door Energy. Yellow Door Energy was advised by Cantor Fitzgerald as sole financial advisor and White & Case as international legal counsel. Dentons acted as international legal counsel to Mitsui & Co.,Ltd., IFC and APICORP.

Sumit Upadhyaya

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