UAE energy firm to acquire 90% stake in Azura Power

ePointZero, an Abu Dhabi-based energy infrastructure platform and subsidiary of 2PointZero Group, says it will acquire a 90 percent stake in Azura Power Holdings Limited, a pan-African independent power producer (IPP).

According to a statement on Monday by the UAE-based ePointZero, Azura Power has more than 750 megawatts (MW) of operating capacity and a development pipeline of over 1.5 gigawatts (GW), operating power generation assets in Nigeria, Senegal and Mozambique, where it supplies about 10 percent of each country’s grid baseload power.

Under the transaction terms, ePointZero said it has partnered with Amaya Capital to establish an acquisition vehicle through which it will acquire the respective ownership stakes of Actis and Africa50.

According to the statement, Amaya Capital, Azura Power’s founding partner, will retain a 10 percent minority stake in the company.

The company said completion of the transaction is subject to regulatory approvals and closing conditions.

Zayed Al Nahyan, chairman of 2PointZero, said reliable power is essential to economic growth and industrial development.

“Reliable power is fundamental to economic growth, industrial development and long-term prosperity. This investment through ePointZero reflects our commitment to deploying long-term capital into critical infrastructure that can support that growth in key markets across Africa,” he said.

On her part, Mariam Almheiri, vice-chair and managing director of 2PointZero, said the acquisition would strengthen the group’s presence in a region with growing energy demand.

“At 2PointZero, we are building platforms that create long-term value by investing in the infrastructure shaping tomorrow’s economies,” she said.

“As ePointZero continues to expand its global energy platform, the acquisition of Azura Power strengthens our presence in a region where energy demand, economic growth, and long-term opportunity are closely aligned.”

Mohamed Hesham, the chief executive officer (CEO) of ePointZero, said Azura Power’s operating assets and position in markets with significant power needs made it an attractive investment.

“Azura Power brings together many of the qualities we look for in an energy platform: critical operating assets, an experienced management team and a strong position in markets with significant long-term power needs,” he said.

Hesham said the acquisition, alongside ePointZero’s strategic investment in Elsewedy Electric, would deepen its energy and infrastructure capabilities across Africa.

Dave Peacock, group CEO of Azura Power, said the transaction was a significant milestone for the company.

Peacock said with ePointZero now joining Amaya, “Azura is well positioned to build on its strong foundations, broaden its opportunity set and accelerate its growth across Africa’s energy sector”.

Azura Power operates 752MW of operational capacity across three assets: Azura-Edo (461MW) in Nigeria, Tobene (116MW) in Senegal and CTRG (175MW) in Mozambique.

The assets are located in three of Africa’s largest natural gas reserve markets. (TheCable)