Abu Dhabi National Energy Company (TAQA), the largest power producer in the UAE, plans to acquire SWS Holding, a water solutions company based in Abu Dhabi, for AED 1.7B ($463M).
Earlier this year, Sustainable Water Solutions Holding Company (SWS Holding) established and now owns Abu Dhabi Sustainable Water Solutions Company (ADSWS). ADSWS is responsible for wastewater collection, treatment, and reuse in Abu Dhabi.
According to the agreement’s terms, TAQA will purchase all outstanding shares of SWS Holding for AED 1.7B. The party will make half of the payment upon completion of the deal, and the remaining 50% will be paid one year later. TAQA also mentioned that there will be an additional payment in 2024 based on the net profits generated in 2023, as stated in a Wednesday statement.
Jasim Husain Thabet’s Vision for Efficient Water Management
Jasim Husain Thabet, the CEO and managing director of Taqa, highlighted the significance of efficient water management in reducing greenhouse gas emissions and supporting the UAE’s net-zero target by 2050. The acquisition of SWS Holding will augment Taqa’s regulated asset value by approximately AED16 billion, securing long-term earnings and cash flow for the company.
Jasim Husain Thabet stated: “By bringing the management of recycled water together with TAQA’s water desalination activity and our recycled water network, we can do even more to support the net-zero target by 2050.”
TAQA believes that SWS Holding complements its existing portfolio and will contribute approximately AED 16B to its regulated asset value, which currently stands at around AED 75B. Zawya News reports that they anticipate completing the transaction within this year, pending regulatory and relevant third-party approvals.
The UAE aims for net-zero carbon emissions by 2050 and is hosting COP28. TAQA acquired a 43% stake in Masdar, focusing on solar and wind power, while ADNOC took a 24% stake and will lead the green hydrogen segment. ADPower owns 90.03% of TAQA, and Multiply Group owns 7.30%.
