Global law firm Norton Rose Fulbright has advised Enel’s renewable arm Enel Green Power (EGP) on a joint venture partnership with the sovereign wealth fund of the State of Qatar, Qatar Investment Authority (QIA). The joint venture will finance, build and operate renewable projects in Sub-Saharan Africa.
The first phase of the transaction involves the acquisition by QIA of 50% of EGP’s stake in four projects under construction in South Africa and two plants in operation in the same country as well as in Zambia, for a total capacity equal to approximately 800 MW. The overall transaction is subject to the change of control approval and antitrust clearance from relevant institutions and regulatory authorities. Under the transaction, EGP and QIA will form a new legal entity for future developments in Sub-Saharan Africa. After closing, all legal entities may be merged into a sole joint venture company.
Under the joint venture partnership agreement, EGP will be responsible for the development of each project and the joint venture has the right to invest in the projects following the successful completion of the development phase by EGP and receipt of any required regulatory approvals. The transaction is line with Enel’s Strategic Plan for 2021 – 2023 and is in the framework of its “Stewardship” business model, whereby it provides key services, products or know-how enabled by platforms catalyzing investments of third parties to maximize value creation.
Arturo Sferruzza, head of the Norton Rose Fulbright’s banking and finance and energy practices in Italy, led the multi-jurisdictional deal team on this transaction. The Milan based team included partner Luigi Costa, counsels Elisabetta Negrini and Ginevra Biadico and associate Federica Desiderato. Competition law advice was provided by partner Jay Modrall and senior associate Violetta Bourt (Brussels) and director Mark Griffiths (Johannesburg); directors Loris Rech (Johannesburg) and Tina Costas (Durban) worked on due diligence issues; directors Jackie Midlane and Stephen Kennedy-Good (Johannesburg) on South African regulatory and corporate matters.
In-house counseling for EGP was provided by William Hartert, Head of M&A and Business Development Legal and Corporate Affairs of Global Power Generation, Lena Chirwa, Head of Legal and Corporate Affairs Sub-Saharan Africa and Michalis Tzanetos.