Taqa sells stake in power firm to Marubeni
Abu Dhabi, October 1, 2007
The Abu Dhabi National Energy Company (Taqa) has agreed to sell 40 per cent of the Emirates CMS Power Company (ECPC) to Marubeni Corporation.
The deal, worth $140million in cash, includes the sale of 100 per cent of Taweelah A2 Operating LLC, which is responsible for the management, operation and maintenance of the Taweelah A2 plant.
A 54 per cent stake in ECPC was transferred by ADWEA to Taqa in June 2005. The purchase of CMS Generation, an international portfolio of energy and utility assets, included an additional 40 per cent stake in ECPC and also 100 per cent ownership of Taweelah A2 Operating.
Purchased by Taqa for $900 million in May 2007, the portfolio also included assets held in Morocco, Saudi Arabia, Ghana, UAE and India. CMS Generation has subsequently been renamed Taqa Generation.
The Taweelah A2 power plant, owned by Emirates CMS Power Company and managed, operated and maintained by Taweelah A2 Operating, has net capacity of 710 MW of power production and 50 MIGD (million imperial gallons a day) water desalination capacity.
“This transaction represents excellent value and underscores our commitment to retaining majority positions in performing assets, while fostering and benefiting from partnerships with word-class international organizations, such as Marubeni,” said Peter Barker Homek, Taqa’s chief executive officer.
“This is another example of Abu Dhabi attracting the highest quality of international investor, keen to share in the country’s growth potential.”
Taqa will retain a 54 per cent interest in ECPC whilst ADWEA will hold onto a 6 per cent stake.
The ECPC transaction with Marubeni is subject to regulatory approval and the approval of the parties’ respective Board of Directors. The transaction is expected to close in November 2007, a statement said.– TradeArabia News Service