Linklaters has advised Globeleq Generation Limited, the emerging markets power company, on its acquisition of a majority interest in the Azito gas-fired power plant near Abidjan in Côte d'Ivoire and full ownership in its plant’s operator from EDF International (EDFI) and ABB Equity Ventures B.V. (ABB).
Earlier in the year, Globeleq signed agreements with EDFI and ABB to pursue acquisition of both entities' shareholdings in Azito Energie and its plant’s operator. The transaction was successfully completed on 29 October 2010 after the necessary regulatory, legal and financial consents were obtained. Industrial Promotion Services (IPS) retains the remaining shareholding in Azito Energie.
The project-financed facility generates approximately 290 MW and supplies over one-third of essential electricity to the country through the privately owned electricity company, CIE. The plant operates under a 24-year concession. Globeleq has held an interest in Azito Energie since 2003 and has participated as a member of the Azito Energie Board. The agreed transaction price with EDFI and ABB is not disclosed.
Globeleq and IPS are currently leading a project to expand and convert the existing plant from a single-cycle power plant to a more efficient combined cycle power plant. This will increase the capacity of the plant by 50% to approximately 420 MW without the need for additional gas and with no additional CO2 emissions.
The Linklaters team was led by projects partner Andrew Jones, in London, and corporate partner Bruno Derieux, in Paris, assisted by a team of lawyers in London, Paris, New York and Amsterdam which included Jen Green, Pierre Thomet, Nicolas Le Guillou, Shalon Spencer and Aymeric Voisin.
Andrew Jones, Linklaters projects partner, said:
"We are delighted to have helped Globeleq increase its stake in this significant project. This is the latest in a series of power deals we have successfully closed in Africa supporting our clients with our sector, product and geographic expertise."
Bruno Derieux, Linklaters M&A partner, added:
"This deal demonstrates Linklaters' capacity to coordinate teams across its various offices worldwide (our London and Paris offices were particularly involved) and also external advisors on complex multi-jurisdictional transactions. We have wide experience both in the financing and M&A markets across Africa and in particular in the infrastructure, energy, resources and regulated sectors. Our Paris office is ideally positioned as a hub for francophone Africa."
For further information, please contact:
Rupert Winlaw on +44 20 7456 3219 or rupert.winlaw@linklaters.com or
Sarah Peters on +44 20 7456 2153 or sarah.peters@linklaters.com
Notes to editors
- Linklaters LLP specialises in advising the world's leading companies, financial institutions and governments on their most important and challenging transactions and assignments. With offices in major business and financial centres, we deliver an outstanding service to our clients throughout the world.
- Linklaters is widely recognised as a top tier legal adviser in Africa, having worked on landmark transactions across the continent for the last 20 years. Linklaters' ability to combine geographic/legal focus (it is the only firm with offices in London, Paris and Lisbon allowing it to cover the main legal and linguistic traditions on the continent) with sector expertise and top M&A and finance practises is key to this success. In response to increasing demand for our expertise involving Africa and our continued commitment to the region, Linklaters has established an Africa Group, bringing together expertise for products and African jurisdictions, with international transaction skills, to provide outstanding service on complex deals involving Africa.
- Linklaters is a market leader in international project and acquisition transactions in the power, resources, telecoms and infrastructure sectors. This transaction is the latest in a series of high profile and successfully closed power transactions on which Linklaters has advised - others have included Cahora Bassa, Mozambique, Bujagali, Uganda and Hydromax, Uganda.
- The firm's Global Energy & Infrastructure Group which, with more than 150 lawyers, is one of the world’s largest, has unparalleled experience of advising sponsors, funders, governments and ECAs on the financing, development and acquisition of projects in the energy, natural resources and infrastructure sectors. Our practice covers the full range of infrastructure transactions, including: roads, airports; bridges & tunnels; health; education; defence; ports; rail; stadiums; telecoms; oil & gas; LNG; clean energy; nuclear; power; refining and petrochemicals; mining and water.
