Actis, a global investor in sustainable infrastructure, has announced the signing of definitive transaction documents for the acquisition of a controlling stake in UAE-based Yellow Door Energy Limited (YDE).
Yellow Door Energy is the leading 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 a 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. The company has key existing relationships with a large customer base of over 50 companies, including sought-after blue-chip businesses such as Nestlé, Majid Al Futtaim, DHL, Mondelēz and Unilever.
Energy supply in the Middle East is heavily dependent on fossil fuels (>90%). Renewable technology deployment is a key enabler for businesses to achieve low carbon transition strategies, and with this latest investment Actis continues its mission to advance a low carbon transition.
The transaction will be funded through Actis’ Energy 5 Fund, Actis’ latest energy fund with $6 billion of investable capital to accelerate the Energy Transition globally. Actis will apply its successful buy-and-build power strategy to scale the business and accelerate growth. The team has invested in over 70 renewable energy projects to date, generating approximately 11GW of renewable energy globally.
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. This investment will enable us to scale geographically through both direct and M&A activities.”
Actis has recently successfully realised three major energy investments in Latin America – the largest independent renewable energy platform in Brazil, the largest renewable energy IPP (independent power provider) in Chile and a leading IPP in Mexico. In April, Actis announced the signing of an agreement to sell Sprng Energy, one of India’s largest renewable energy companies and most recently announced the launch of a power generation business dedicated to delivering an equitable Energy Transition in Southeast Asia, an investment in Omega Energia, the largest publicly listed pure-play renewable energy generation company in Latin America, and the launch of a Central and South Eastern Europe renewables platform.
Actis was advised by HSBC 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).
