Arcapita channels $2bn to China wind farms

The Bahrain-based investment firm is betting on China’s alternative energy sector through a joint venture with India’s Tanti Group. The deal is Arcapita’s first in China.

A joint venture between Arcapita and Colossus, a holding company of the Indian conglomerate Tanti Group, has acquired Beijing-based Honiton Energy Holdings in a bid to invest $2 billion (€1.3 billion) in Chinese wind farms.

The joint venture plans to develop wind farms in the country’s Inner Mongolia region with a capacity of 1,650 megawatts. The deal is Arcapita’s first investment in China, after it revealed earlier this year that it was in talks to buy up to three Asian utilities at up to $3 billion each. Tanti owns two-thirds of the Indian wind turbine maker Suzlon Energy.

Arcapita has been a major player in the global energy market, acquiring the Bosque power generation facility in Laguna Park, Texas in January this year. The Bosque facility sells its energy and related services to the growing Texas power market. The deal follows Arcapita’s $4.2 billion acquisition of Northern Ireland electricity utility, Viridian Group, which closed in December 2006.

At time of press, it was revealed that the Bahrain-based investment firm was among a group of expected bidders for Singapore investor Temasek Holdings’ sale of Senoko Power, the country’s largest power generation company.