Actis to acquire controlling stake in renewable energy platform
Actis has announced the signing of definitive transaction documents for the acquisition of a controlling stake in Yellow Door Energy (YDE).
YDE is a distributed commercial & industrial (C&I) solar platform in the Middle East and Africa (MEA) region with around 200MW of secured production capacity. Closing of the transaction remains subject to obtaining the relevant regulatory approvals.
In all its target markets, YDE can offer customers power supply that is more economical and sustainable than the grid. Demonstrating 10-50% power cost savings for customers, the company is positioned in the fast-growing C&I segment, in key MEA markets. YDE has 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 a large customer base of over 50 companies, including businesses such as Nestlé, Majid Al Futtaim, DHL, Mondelēz and Unilever.
The transaction will be funded through Actis’ Energy 5 Fund. Actis will apply its buy-and-build power strategy to scale the business and accelerate growth.
Lucy Heintz, partner and head of energy infrastructure at Actis commented, “We’re delighted to be contributing to the Middle East and Africa region’s transition away from fossil fuels by deploying new solar PV technology, presenting an exciting opportunity to scale the business, and where we see a clear opportunity and large addressable market. Our strategy is to build the business into the region’s distributed solar sustainability leader.”
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. I look forward to continuing our mission to provide clean, affordable, and reliable energy to businesses in the MEA region. As a result, our customers will become more successful, create more jobs and contribute to their local communities. This investment will enable us to scale geographically through both direct and M&A activities.”
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