Indian-Israeli JV Grows 2,540 MW in Globeleq Acquisition

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Researched by Industrial Info Resources (Sugar Land, Texas). DS Construction of India and Jerusalem-based Israel Corporation have won a bid to acquire Globeleq’s Bermuda controlled power assets with a capacity to generate 2,540 MW of electricity. The $568 million deal gives the 50/50 partners control over natural gas and hydroelectric power plants in Peru and Bolivia plus other plants in El Salvador, Dominican Republic, Guatemala, Nicaragua, Panama and Jamaica . At the same time as agreeing to the sale of these assets, Globeleq agreed to sell North African and Asian plants with operations in Egypt, Bangladesh, Sri Lanka and Pakistan to a consortium of Tanjong Energy Holdings (Malaysia) and Aljomaih (Saudi Arabia). This includes a 683 MW power plant in Egypt. The total value of the two transactions is expected to be over $1 billion.

Globeleq is owned 100% by CDC Group. Actis, a leading private equity investor in emerging markets, manages CDC’s investment in Globeleq. CDC is a UK government owned fund with net assets of $4 billion. It invests in private equity funds focused on the emerging markets of Asia, Africa and Latin America with particular emphasis on South Asia and sub-Saharan Africa.

The Indian-Israeli joint venture (JV) is also considering the acquisition of Globeleq’s 550 MW Africa package if they decide to sell. The JV is also looking at another 200 MW in Africa, a 200 MW power plant in Peru and a 350-400 MW power plant in Canada. In India, the JV will be looking to participate in the 4,000 MW mega power projects in Jharkhand, Orissa and Maharastra which each need an investment of up to $4.4 billion. Currently DS Construction is working on the 1,000 MW Naying and 260 MW Kutehr hydropower projects in India and Latin American additions have 3,710 MW of capacity with a target of 10,000 MW in the medium term.

In February Indian companies Lanco Infratech and Jindal Steel & Power acquired Globeleq’s total holding in Globeleq Singapore.

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