IBL Group, a Mauritius conglomerate led by multimillionaire Arnaud Lagesse, has acquired an undisclosed stake in the Kenyan solar power company Equator Energy Limited, thereby expanding its presence in the local economy.
As part of a consortium, IBL has entered into a share purchase agreement for the acquisition of a majority stake in Equator Energy.
The company stated that it is the lead investor in a transaction in which STOA S.A., an impact fund, participated as a financial co-investor.
Equator Energy is present in Kenya, Uganda, Somalia, Zimbabwe, Gambia, and South Sudan and manages approximately 35 megawatts of solar installations.
This transaction follows the mid-February announcement that IBL had acquired an undisclosed stake in Harley’s, a pharmaceuticals distributor based in Nairobi, highlighting its rapid investments in Kenya.
Also as part of a consortium, IBL acquired a 26.32-percent stake in supermarket chain Naivas Limited for $100 million (Sh13 billion) last year.
The rapid succession of transactions signifies IBL’s aggressive move to expand its portfolio in the local and regional market, which is one of the principal economic growth hubs in Africa.
IBL Group CEO Arnaud Lagesse stated that the Equator transaction will enable the conglomerate to implement solutions based on renewable energy, energy savings, and waste recycling.
“As Equator Energy provides simple and integrated solutions in emerging markets where solar energy has added value, this partnership is aligned with our aim to be a pioneer in the energy transition,” Lagesse said in a press statement.
Equator was founded in 2016 and offers fully integrated renewable energy systems, ranging from simple grid-connected systems to solar-diesel hybrid systems and fully autonomous off-grid systems.
Its management and technical staff are headquartered in Nairobi, while maintenance teams are distributed across the markets it serves.
The completion of the transaction is contingent on the satisfaction of certain conditions, such as obtaining the necessary regulatory approvals and meeting all legal requirements.
As part of its strategy to expand in East Africa, the conglomerate established a Nairobi office to lead its hunt for acquisition opportunities.
Kenya’s economic growth and status as a regional trade and logistics hub have piqued the interest of an increasing number of Mauritius-based companies.
As part of its regional expansion strategy, the Mauritian conglomerate Rogers Group recently announced it has acquired Rongai Workshop & Transport Limited through one of its subsidiaries, Velogic Logistics.
