Transaction Summary
Globeleq Africa Limited (Globeleq) has signed a share purchase agreement with Norfund, Norway's development finance institution, to acquire a 51% equity stake in Lunsemfwa Hydro Power Company (LHPC), Zambia's first independent power producer (IPP). Incorporated in 2001, LHPC operates two run-of-river hydropower plants, Lunsemfwa and Mulungushi, with a combined installed capacity of 56 MW in Zambia's Central District. Agua Imara, a wholly-owned subsidiary of Norfund, held the 51% stake. This transaction represents a pivotal move for Globeleq, marking its entry into the Zambian hydropower energy market and its first investment in hydropower technology. Notably, Norfund is also a minority shareholder in Globeleq, holding a 30% stake. The acquisition is expected to reach financial close in the second half of 2025.
Terms
- Buyer: Globeleq Africa Limited
- Buyer Type: Strategic Buyer
- Seller: Norfund
- Target: Lunsemfwa Hydro Power Company
- Transaction Type: Mergers & Acquisitions
- Type of M&A: Buyout
- Financing Type: Equity
- Equity Stake: 51%
