Abu Dhabi Power Corporation seeks to take control of Taqa in major asset-swap

4 Feb 2020
Abu Dhabi Power Corporation seeks to take control of Taqa in major asset-swap

State utility company Abu Dhabi Power (ADPower) is planning to take control of Abu Dhabi National Energy Company (Taqa) in an asset swap deal which would involve it transferring billions of dollars-worth of power and water assets

State utility company Abu Dhabi Power (ADPower) is planning to take control of Abu Dhabi National Energy Company (Taqa) in an asset swap deal which would involve it transferring billions of dollars-worth of power and water assets.

According to UAE state news agency WAM, ADPower submitted an offer to Taqa with principal terms and conditions under which ADPower would transfer the majority of its water and electricity generation and transmission and distribution assets in return for 106 billion convertible shares.

The transferred companies would have a power generation capacity of 49GW and a desalination capacity of 58 million imperial gallons a day (MIGD).

“This will bring an integrated utilities company to the UAE public market for the first time and will provide investors with an opportunity to invest in high-quality and secure assets for long-term growth,” said Saif Mohamed Al Hajeri, the Chairman of ADPower.

ADPower said it was planning to maintain Taqa’s existing listing on the Abu Dhabi Exchange, would make the new combined entity one of the largest companies on the emirate’s stock exchange.

ADPower has emerged as a key entity in the UAE’s utilities sector following the restructuring of Abu Dhabi’s power and water companies over the past three years. The most significant reforms were announced in November 2018, when Emirates Water & Electricity Company (Ewec) was established to replace Adwec (Adwec) as the offtaker and client for delivering new utilities projects across Abu Dhabi.

Ewec was established to not only replace Adwec in Abu Dhabi, but also to assume responsibility for buying and selling electricity and water production from the Federal Electricity Company (Fewa), the state utility provider for the Northern Emirates.

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