Taqa buys 50pc stake in Marubeni Caribbean unit
Abu Dhabi , February 18, 2009
Abu Dhabi National Energy Company (Taqa), a global energy company, today announced the purchase of a 50 per cent equity stake in the existing Caribbean portfolio of Marubeni Corporation (Marubeni), Japan’s largest trading company.
Marubeni’s assets in the region are currently part-owned and operated in conjunction with local and international partners. The purchase will be made under a 50/50 joint venture focused on long-term investments in the energy sector in the region, a statement said.
The value of the transaction has not been disclosed.
Peter Barker-Homek, chief executive officer of Taqa, said: “The transaction we bring to you today is another endorsement of our strategic objective to deliver profitable growth in multiple markets where we can access stable cash flows, which complement and enhance our existing diversified energy portfolio.
“Taqa shares the same outlook on long-term investment as Marubeni and brings solid experience in power sector and a strong financial position to the joint venture. Together, we have previously delivered successful partnerships in other regions, having jointly invested in power generation and water production globally. Our joint venture in the region will act as a platform to explore multiple opportunities, beyond the downstream segment, which may assist in creating a more sustainable energy environment for Caribbean countries.”
The Marubeni Caribbean portfolio consists of equity stakes in power generation and transmission facilities with a combined generation capacity of 2,300MW (gross) in Jamaica, the Bahamas, Trinidad and Tobago and Curaçao. It includes:
* 55.4 per cent equity interest in Grand Bahama Power Company in Grand Bahama
* 80 per cent equity interest in Jamaica Public Service Company in Jamaica, which owns and operates 10 generating facilities, including six hydroelectric plants. These plants expand Taqa’s downstream business into this sustainable energy source.
* 39 per cent equity interest in PowerGen which is an IPP that supplies 80 per cent of total electricity demand in Trinidad & Tobago
* 25.5 per cent equity interest in Curacao Utilities Company which supplies electric, steam and water to refinery plant of Petroleos de Venezuela, SA in Curacao Island
Taqa’s role will be operational, with its 50 per cent interest represented at board level at each facility and holding key management positions. The transaction is expected to close by the end of Q1 2009, subject to regulatory consents, it said. - TradeArabia News Service
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