A unit of Abu Dhabi's 2PointZero Group is acquiring a controlling stake in African power generation company Azura as it continues to expand its global portfolio of specialised energy infrastructure assets.
The investment holding company will acquire a 90 per cent stake in Azura Power Holding through its wholly owned subsidiary ePointZero, which will give it access to some of the largest energy markets in Africa, it said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
Under the terms of the deal, ePointZero is partnering with Amaya Capital to establish an acquisition vehicle, through which ePointZero will acquire the ownership stakes of Actis and Africa50.
Amaya Capital, Azura Power’s founding partner, will retain a minority interest of 10 per cent.
Completion of the transaction remains subject to regulatory approvals and closing conditions, the company 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,” said 2PointZero managing director Mariam Almheiri.
The investment in Azura Power also underpins the sustained growth of the market in Africa as population growth, urbanisation and industrial development drive demand for new generation capacity.
Electricity demand across the continent is expected to nearly double by 2040. However, electricity access across Sub-Saharan Africa remains at roughly 55 per cent, underscoring both the scale of infrastructure needs and the opportunity for long-term private capital, 2PointZero said, citing World Bank data.
Azura is a key independent power producer in Africa with experience in the gas sector and the development of energy projects. It has 752 megawatts of operational capacity across three African countries: Nigeria, Senegal and Mozambique. It currently generates around 10 per cent of grid baseload power in each of those countries.
The company operates Azura-Edo, with 461MW capacity in Nigeria, Tobene with 116MW operational capacity in Senegal as well as CTRG, a unit with 175MW capacity in Mozambique.
All three assets are underpinned by long-term power purchase agreements, 2PointZero said.
The company also has an active development pipeline of more than 1.5GW consisting of gas, renewable and battery energy storage system projects across the continent. The pipeline could more than triple operational capacity in the coming years, the statement said.
Rapid expansion
Headquartered in Abu Dhabi, ePointZero is a global platform investing in specialised energy infrastructure. The company invests capital in pipelines, power generation and energy storage assets.
In July, ePointZero acquired US natural gas firm Traverse Midstream Partners for $2.25 billion, giving it access to the North American market.
The all-cash transaction gave the Abu Dhabi company minority interests of 35 per cent in Rover Pipeline and a 25 per cent stake in Ohio River System, both operated by one of the largest midstream operators in the US.
