Subscriber Login

Deal Watch

UAE TAQA agrees AED200 billion asset swap deal with ADPower [free access]

April 30, 2020

Recently, Abu Dhabi Power Corporation (ADPower), a subsidiary of government-owned Abu Dhabi Development Holding Company PJSC, has received a nod from one of its subsidiaries — Abu Dhabi National Energy Company (TAQA), to transfer majority of ADPower’s electricity generation, transmission and distribution (T&D) and water companies, in return for 106,367,950,000 convertible shares in TAQA, and termination of the land lease agreement between ADPower and TAQA.


The water and electricity generation, and T&D firms that ADPower is proposing to transfer, include, 4.9 GW of power generation capacity, 80,000 km of T&D network, and about 20,000 km of water pipeline network.


As per reports, the proposed transaction will create an AED200 billion worth giant combined entity, aimed at accelerating the transformation of the water and electricity industry in the United Arab of Emirates (UAE). The combined entity will be one of the largest Gulf Cooperation Council (GCC) utility companies, and one of the top 10 integrated utility players in Europe and the Middle East and Africa (EMEA) region, in terms of regulated assets.


ADPower owns majority of the water and electricity assets across Abu Dhabi, UAE, through its subsidiaries — Emirates Water and Electricity Company (EWEC), Abu Dhabi Transmission and Despatch Company (TRANSCO), Abu Dhabi Distribution Company (ADDC), Al Ain Distribution Company (AADC), Al Mirfa Power Company (AMPC), Abu Dhabi Energy Services (ADES) and the Abu Dhabi Securities Exchange (ADX)-listed TAQA.


The transaction is expected to close by the third quarter of 2020.