As part of its objective to create a diverse and well-balanced portfolio, Abu Dhabi’s holding company ADQ has agreed to sell an 8.6% stake in Abu Dhabi National Energy Company, more commonly known as Taqa.
ADQ, which did not disclose the total value of the transaction, said it monetized the minority stake to Multiply Group, Abu Dhabi Pension Fund, and other investors.
However, in a statement to Abu Dhabi Securities Exchange, Multiply Group said it has acquired a 7.3 percent stake in Taqa in a deal worth Dh10 billion ($2.72bn).
Abu Dhabi-listed Taqa, a leading utilities firm in Europe, the Middle East and Africa, is a key player in driving the UAE’s clean energy transition. It has significant investments in power and water generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations.
“The transaction underlines our efforts to attract long-term institutional partners and leverage monetization opportunities that ensure we generate sustainable capital growth and a balanced portfolio of diversified investments,” said Mohamed Alsuwaidi, managing director and chief executive of ADQ.
“We also believe this transaction will support our aspiration to facilitate increased free float in Taqa and Abu Dhabi’s capital markets,” Mr Alsuwaidi added. Established in 2018, ADQ is an Abu Dhabi-based investment and holding company. Its investments span key sectors, including energy and utilities, food and agriculture, health care and life sciences, and transport and logistics, among others.
Taqa remains a key asset within ADQ’s energy and utilities portfolio, supporting its activities in accelerating the UAE’s clean energy transition while generating sustainable financial returns, the company said in a statement.
Operating in 11 countries, Taqa has recently acquired a controlling stake in Masdar’s renewable business, along with Abu Dhabi National Oil Company and Mubadala, which aims to become a global clean energy company with more than 50-gigawatt capacity by 2030.
In June, Taqa made a secondary listing of nine bonds valued at $8.25bn on the Abu Dhabi Securities Exchange, the Arab world’s second-largest stock market by market value.
Together with the Emirates Water and Electricity Company, it also raised about $700 million through its first green bond to diversify funding sources earlier this year.
Its net profit attributable to equity investors increased to around Dh6 billion ($1.63 billion) in 2021 from Dh2.8 billion the year prior.
