Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
E Point Zero Holding, a subsidiary of 2PointZero Group, has entered into an agreement to acquire a 90% stake in Azura Power Holding Limited, an African power infrastructure company with operating assets in Nigeria, Senegal and Mozambique.
2PointZero Group, a company listed on the Abu Dhabi Securities Exchange (ADX), said in a stock market disclosure that “ePointZero is currently undertaking the required procedures to complete the transaction, subject to obtaining the necessary approvals from the relevant regulatory authorities.”
The disclosure did not provide a value for the transaction or a timeline for its completion.
Azura Power is an independent power producer with 752 megawatts (MW) of operating capacity across three power-generation assets in Africa. Its largest facility is the 461MW Azura-Edo power plant in Nigeria, while its portfolio also includes the 116MW Tobene plant in Senegal and the 175MW CTRG facility in Mozambique.
According to the disclosure, the three assets are located in countries that are among Africa's largest natural gas reserve markets and are backed by long-term power purchase agreements. Such agreements typically provide for electricity produced by a plant to be purchased under long-term contractual arrangements, providing long-term revenue visibility.
Azura Power has significant experience in the gas sector and in developing energy projects, and is seeking to expand its operating portfolio as Africa's energy sector undergoes a transition, the disclosure said.
Apart from its existing plants, Azura has an active development pipeline exceeding 1.5 gigawatts (GW). The proposed projects span gas-fired generation, renewable energy, and battery energy storage systems, or BESS, across different parts of the African continent.
The acquisition would expand Abu Dhabi-based ePointZero's exposure to power-generation infrastructure in Africa. Founded in Abu Dhabi, ePointZero describes itself as a global investment platform focused on specialised energy infrastructure. Its investments cover pipelines, power generation and energy-storage assets.
The proposed Azura Power acquisition follows another major overseas transaction by ePointZero. The company recently completed the $2.25 billion all-cash acquisition of Traverse Midstream Partners in the United States, giving it a 35% stake in the Rover Pipeline and a 25% stake in the Ohio River System. Both midstream assets are operated by Energy Transfer, a major US energy infrastructure operator.
