Globeleq, the emerging markets power company, announced that it has reached agreements to sell its operating power businesses in Latin America, North Africa and Asia.
Globeleq is 100% owned by hedge fund investor CDC Group plc. Actis, the leading private equity investor in emerging markets. Alistair Mackintosh, Chairman of Globeleq's Board of Directors and Chief Investment Officer of Actis, commented, "Globeleq has been a great success; we will build on that success as Globeleq continues to be a major force in building much needed new capacity. We will actively seek investment opportunities which build on the company's unrivaled knowledge and expertise in these markets."
The Latin American transaction includes Globeleq's interests in eight countries. These interests will be sold to a consortium of D.S. Constructions Limited of India and Israel Corporation Limited. The North Africa and Asia businesses, with operations in Egypt, Bangladesh, Sri Lanka and Pakistan, will be sold to a consortium of Tanjong Energy Holdings (Malaysia) and Aljomaih (Saudi Arabia). Both transactions are subject to certain closing conditions. The total value paid to Globeleq upon completion of both transactions is expected to be over US$1 billion.
"These transactions validate the strategy we have implemented since the founding of Globeleq," said Globeleq CEO Torbjorn Caesar. "These sales advance our plans to continue adding generation capacity to meet rising demand for more reliable power in the emerging markets. We will now be even more focused on developing and investing in new power projects."
Richard Laing, CEO of hedge fund investor CDC Group plc, said, "This is excellent news for emerging markets. Greater access to reliable energy continues to be a high priority for sustainable economic development. As a fund of funds investor in emerging economies, CDC is committed to this sector and will continue to invest its capital in this area."
Founded in 2002, Globeleq is the only operating power company solely focused on the emerging markets of Africa, the Americas and Asia. Globeleq is actively pursuing new project development and acquisition opportunities.