Actis gets $1 billion for CDC power assets

Emerging private equity market investor Actis has made over $1 billion from the sale of power assets held by Globeleq, a subsidiary of UK investment group CDC, through two transactions.

Actis, an emerging market private equity fund manager, has completed the sale of two power operating businesses previously owned by Globeleq, a subsidiary company of UK government-backed emerging markets fund of funds investor CDC Group.

Actis manages CDC’s investment in Globeleq, a power subsidiary founded in 2002. It is expected to generate more than $1 billion (€742 million) from the two transactions, according to a statement, after selling assets spread across Latin America, North Africa and Asia.

Actis has sold seven power plants, which are located in Egypt, Bangladesh, Pakistan and Sri Lanka and have a total capacity of 1434 MW, for $493 million to Pendekar Energy. Pendekar is 55 percent owned by Tanjong, a Malaysia-listed conglomerate whose share of the transaction amounts to $271 million, while the remaining 45 percent stake is held by Aljomaih, a private diversified Saudi trading company.

In a separate transaction, which remains subject to certain closing conditions, Actis sold Globeleq’s interests in eight Latin American countries to a consortium comprising India-based DS Constructions and Israel Corporation. The sale represents the entire portfolio of Globeleq’s existing assets in the Americas.

Paul Fletcher, senior partner of Actis, said the transactions “validated our investment thesis of countercyclical asset acquisitions and the strategy of owning majority operating positions in these assets.”

Alistair Mackintosh, chief investment officer of Actis and chairman of Globeleq’s board, said Globeleq would now be developing and investing in new projects.