Dubai’s Alcazar Energy Partners (AEP), a wind and solar developer, has been bought out by the state-owned Chinese company Three Gorges South Asia Investment Ltd. for $500 million, allowing the Asian country to gain a foothold in the Middle East and North African renewable energy markets.
Although the companies didn’t disclose the amount, but Bloomberg recently reported it could be about $500 million.
AEP’s investors include Mubadala Infrastructure Partners, BluStone Management and DASH Ventures, IFC, a member of the World Bank Group, and IFC’s Catalyst Funds, and Alcazar Energy Partners’ management team. It has built a portfolio of five solar and two wind projects in Egypt and Jordan, with a total operational capacity of 411 MW.
AEP is a leading independent developer and power producer, headquartered in the Dubai International Financial Centre, with two regional offices in Jordan and Egypt. Since it was set up in 2014, the company has mobilized in excess of $700 million in debt and equity.
China Three Gorges South Asia Investment is an investment holding company which was formed by China Three Gorges Corporation and China Three Gorges International Corporation in 2011, to acquire, develop, build, own and operate renewable power generation projects, primarily in Asia. Other shareholders of CSAIL include International Finance Corporation and Silk Road Fund.
Financial advisors to CSAIL on this transaction were Natixis and its affiliates Vermilion Partners and EFG Hermes. Allen & Overy LLP provided legal counsel.
Standard Chartered acted as exclusive financial advisor to Alcazar Energy Partners. Freshfields Bruckhaus Deringer LLP and Bracewell provided legal counsel.