MEA – Actis, a global investor in sustainable infrastructure, is set to acquire a controlling stake in the distributed commercial and industrial (C&I) solar platform, Yellow Door Energy Limited (YDE).
YDE’s platform is in the Middle East and Africa region with around 200MW of secured production capacity. Closing of the transaction remains subject to obtaining the relevant regulatory approvals.
YDE has one of few operating C&I portfolios of scale in the region, with 106MW in operation and 104MW awarded and under construction.
“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,” Lucy Heintz, Partner and Head of Energy Infrastructure at Actis, commented on the Actis stake in Yellow Door said.
“Our strategy is to build the business into the region’s distributed solar sustainability leader.”
The energy supply in the Middle East is heavily dependent on fossil fuels (>90%). Renewable technology deployment is, therefore, a key enabler for businesses to achieve low carbon transition strategies.
“I look forward to continuing our mission to provide clean, affordable and reliable energy to businesses in the MEA region,” Jeremy Crane, Founder and CEO of Yellow Door Energy, said.
“As a result, 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.”
This transaction will be funded through Actis’ Energy 5 Fund, Actis’s latest energy fund with US$6 billion of investable capital to accelerate the global energy transition.
Actis will apply its buy-and-build power strategy to scale the business and accelerate growth.
“As one of our earliest equity investments in the renewable energy space, Yellow Door Energy has demonstrated strong business growth over the past few years thanks to its strong leadership team and commitment towards innovation and advancing the Energy Transition,” Khalid Ali Al-Ruwaigh, CEO of APICORP, said.
“We believe having a reputable partner such as Actis will propel the company to the next stage of its growth. The additional backing is especially relevant today considering the growing urgency to meet decarbonisation goals and bolster the sustainability of the regional energy landscape.”
HSBC advised Actis as sole financial advisor and Clifford Chance as international legal counsel on this transaction.
Yellow Door Energy was advised by Cantor Fitzgerald as sole financial advisor and White & Case as international legal counsel. Dentons acted as international legal counsel to Mitsui & Co., Ltd., IFC and APICORP (in their respective capacities as shareholders).
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