20 October 2021
Clifford Chance advises A.P. Moller Capital on acquisition of 44% stake in Cabeolica, Cape Verde, Africa
Clifford Chance has advised A.P. Moller Capital, through the Africa Infrastructure Fund, on its acquisition of a 44% stake in Cape Verdean wind energy producer Cabeolica S.A. (“Cabeolica”) from Africa Finance Corporation (“AFC”).
Cabeolica is Cape Verde’s largest IPP and renewable energy producer and, together, A.P. Moller Capital and AFC, who will remain a shareholder, will focus on further improving supply of renewable energy in Cape Verde.
Cabeolica sells electricity to the national utility, Electra S.A.R.L under a long-term power purchase agreement. With wind farms located on four islands in the Cape Verde archipelago with a total capacity of 25.5MW, the company has provided reliable renewable power to the grid since the start of its operations in 2011. The acquisition is also a good indication of the positive investment environment in Cape Verde and testimony to the country’s ability to attract large international actors notwithstanding the relative size of its economy. AFC will continue to hold a 50% stake in Cabeolica, alongside the Government of Cape Verde and Electra, who together own the remaining 6% stake.
The core Clifford Chance team on the transaction was led by Jason Mendens, with assistance from senior associates Gareth Dray and Rezwan Azam in Dubai, as well as partner Jeremy Connick and associate Yemi Adekoya in London.
Jason Mendens comments "On behalf of our Africa Group, we are very pleased to advise A.P. Moller Capital on another key African transaction".
Ranked 1st for M&A in the Middle East and Africa by Mergermarket in 2020, Clifford Chance regularly advises on the region's most high profile and innovative M&A transactions. The firm recently advised on the largest ever M&A transactions in the Middle East, including PIF's US$ 69 billion sale of its stake in SABIC to Saudi Aramco and AD Power's US$20 billion sale to TAQA. The Firm also extensive experience in the renewables sector having played a role in the majority of renewable power projects that have taken place to date in the Middle East and North Africa.