Danish firm AP Moller Capital has acquired power producer Iberafrica after the collapse of a deal to buy out the electricity generator for Sh6.22 billion by a South African firm.
AP Moller Capital, which focuses on infrastructure in growth markets, acquired fully the 52.5-megawatt independent power producer from Spanish power and gas utility firm Naturgy.
Lars Jakobsen, a senior partner at AP Moller Capital, said the acquisition provided the Danish firm with a platform to advance its “investment commitments” in Kenya, and laid out further plans to invest in greenfield (where it builds its own facilities from the ground up) and brownfield (where it buys or leases existing facilities) power and energy infrastructure assets.
“Kenya is one of our focus countries with its sizeable, growing and well-diversified economy, as well as its strategic location in East Africa,” he said.
The deal come months after South Africa-owned AEP Energy Africa put on hold bid to acquire the Moi-era Iberafrica for Sh6.22 billion ($61.57 million).
Iberafrica began operations in the country in 1997, and it has been selling electricity to Kenya Power.
It previously supplied Kenya from 103.57 megawatt thermal plants powered by diesel, but part of the plants were decommissioned after their supply contracts ended.
The supply contract for the remaining 52.5 megawatt (MW) plant will expire in 2034.