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AXA group takes stake in Emerging Capital Partners - Eranove subsidiary

Emerging Capital Partners (ECP) has announced that the AXA Group has taken a stake in the Eranove Group (in which ECP Africa Fund II holds 55.9%).
The transaction, through AXA’s Real Estate division, which specializes in real estate and infrastructure, is to acquire the 18.6% residual stake which was held by the Bouygues Group.
“Having a top-flight investor like AXA Real Estate on board is great news for Eranove and a great pleasure for ECP,” commented Vincent Le Guennou, Co-CEO of ECP and Chairman of the Board of Eranove.
Formerly known as Finagestion, the Eranove Group was created when Bouygues combined the African assets of its subsidiary SAUR into a single company.
ECP first bought into Eranove’s capital in 2008 and acquired a majority holding a year later.
Eranove currently accounts for almost 70 percent of installed electricity generating capacity in the Ivory Coast, supplying 1,136 MW via two of its subsidiaries, Compagnie Ivoirienne d’électricité (CIE) and Compagnie Ivoirienne de production d’électricité (CIPREL).
CIE operates six hydroelectric and a thermic power station and also manages the transport and distribution network.
CIPREL operates one of the country’s most important thermal power stations, where the company is currently completing its expansion through one of the largest infrastructure investments in recent years in the Ivory Coast (EUR 343.6 million). Phase one (111 MW gas turbine) opened in January 2014, while phase two (111 MW steam turbine) should start operation at the end of 2015.
Eranove is also represented in the water sector through Société de distribution d’eau de la Côte d’Ivoire (SODECI) and Sénégalaise des Eaux (SDE), which are by way of delegation of public service, the leading African players in producing and distributing drinking water and sanitation.
Eranove has also focused on expanding across Africa in recent years, winning a technical support contract from Régideso in the Democratic Republic of Congo in 2012 and in June 2015, signing a contract to design, build and operate the hydroelectric power station at Kenié with the government of Mali, through their subsidiary Kenié Energie Renouvable.
In choosing to make its first move into Africa with this transaction, AXA Real Estate has underlined the attractiveness of Eranove Group’s business model. Eranove Group has developed sound expertise in a continent whose current annual financial requirements are estimated at more than USD 40 billion for energy, and more than USD 20 billion for water and sanitation.
There are more than 300 million people living without a source of drinking water in Africa and more than 600 million without access to electricity.
“With our new shareholder, Eranove will continue to pursue and broaden its goal of developing and facilitating the population’s access to essential life services. I would also like to thank Bouygues Group for the excellent working relationship we have had over the last seven years,” Vincent Le Guennou concludes.
Emerging Capital Partners (ECP) is a pan-African private equity firm that has raised over US$2 billion for growth capital investing in Africa. Founded in 2000, ECP was one of the first firms dedicated to Africa which, today, translates into over 60 investments and over 30 exits through seven funds.