Globeleq acquires 74% stake in Nigeria’s CGNL private power generation company
Globeleq, an independent power generation company in Africa, has confirmed it will take a 74% majority equity stake in an existing Nigerian power business called CPGNL Limited (CPGNL), which will be rebranded as Globeleq Power Solutions Nigeria Limited. The current owner of the business, the Clean Energy Group, will retain the remaining 26% shares.
CPGNL has a portfolio of assets which serve commercial and industrial customers mostly in the southwest of Nigeria. These include 12 operating plants with a total capacity of 58 MW, three plants in construction (9 MW total capacity), as well as approximately 100 MW of projects in development. The local team’s depth of knowledge will complement the existing expertise at Globeleq and provides an immediate operational presence in the country.
Fabio Borba, Managing Director at Globeleq, who led the transaction, noted: “This investment demonstrates our commitment to look beyond the conventional generation methods and provide cleaner, more reliable electricity solutions directly to industries in the country. This all helps to produce a flow of capital that supports jobs, improves lives and aids transformation of the economy.”
Globeleq’s CEO, Mike Scholey added: “Commercial and industrial manufacturers will have more sustainable options to connect their businesses. Our investment will drive growth and support the Government’s industrialization agenda. We look forward to welcoming the new team into the company and bringing together the best of our organizations.”
Dipi Khilnani, Chairman of Clean Energy Holdings added: “We are very excited about Globeleq’s entry into the business. We are confident we will deliver competitive, environmentally positive solutions to the growing demand in Nigeria, particularly given Globeleq’s extensive experience and track record across the continent. As a business we have always had a strong commitment to the development of Nigeria and this investment significantly strengthens our capability.”
Globeleq’s entry will provide additional investment to develop and grow the existing pipeline of projects, drive operational excellence and setup the business towards a low carbon future. Upcoming technical improvements to the existing operations and implementing new technology will focus on efficiency and reducing the carbon footprint by displacing diesel and introducing solar generation elements.
