Taqa buys 40pc stake in Oman aluminium firm
Abu Dhabi, June 30, 2010
Abu Dhabi National Energy Company (Taqa) said it has signed an agreement with Abu Dhabi Water and Electricity Authority (ADWEA) to buy 40 per cent stake in Sohar Aluminium Company (SAC), Oman for $400 million.
Taqa is a global energy company majority owned by the Abu Dhabi Government and listed on the Abu Dhabi Securities Exchange.
As per the agreement ADWEA, a majority shareholder in the SAC, will transfer to Taqa its stake in the Omani firm.
SAC produces 360,000 tonnes of aluminium per annum at purities of p1020 and above. SAC also owns and operates a state of the art 1,000 MW combined cycle captive power plant. SAC is a joint venture between the Oman Oil Company, ADWEA and Rio Tinto Alcan.
The purchase price of this stake is approximately $400 million and the final terms are to be agreed between Taqa and ADWEA. The completion of the transfer is subject to certain conditions and third party consents, said a top official.
Abdulla Saif Al-Nuaimi, chief executive officer and managing director of Taqa, said: 'The acquisition of these facilities at Sohar demonstrates our strategy of delivering stable cash flows and sustained long term growth. Our track record in power generation means that we are well placed to add value to such an energy intensive business as aluminium.'
'This is a high quality operation and is not only expected to increase Taqa’s cash flow, but provides entry for us into the Sultanate of Oman,' he added.-TradeArabia News Service