Largest utility firm formed; TAQA and ADPower complete merger

By Rahul Vaimal, Associate Editor
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TAQA
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Abu Dhabi National Energy Company (TAQA) has successfully completed its transaction with Abu Dhabi Power Corporation (ADPower) which creates one of the largest utility companies in the Europe, Middle East and Africa (EMEA) region.

The deal which was initially proposed in February 2020 by ADPower to the Taqa Board of Directors, received Taqa shareholder approval in April 2020. Through the agreement, ADPower transferred the majority of its power and water generation, distribution and transmission assets to Taqa in exchange for 106,367,950,000 new shares.

The completed transaction makes Taqa, listed on the Abu Dhabi Securities Exchange (ADX), UAE’s third-largest publicly traded company by market capitalization and among the top-ten integrated utility companies in EMEA by regulated assets.

Taqa currently has a global power generation capacity of 23 GW and 916 MIGD of water desalination capacity, of which renewable sources contribute towards 1.4 GW. Taqa’s 4.4 GW and 200 MIGD projects are under development, including 2 GW renewable sources project.

The firm’s assets now include 12 power and water generation plants in operation in UAE. Taqa now also holds all of Abu Dhabi’s power and water transmission and distribution companies in addition to its existing international assets in the UK, US, Ghana, Saudi Arabia, India, the Netherlands, Iraq, Canada, Morocco and Oman.

ADPower will own 98.60% of the entire issued share capital of Taqa through this agreement. a company statement stated that it is Taqa’s intention to seek an increase to the free float through a follow on the public offering.

Chairman - TAQA
Mohamed Hassan Al Suwaidi
Chairman – TAQA

“The successful consolidation of Abu Dhabi’s power and water assets has created a true national energy champion that is well-positioned to spearhead the transformation of the utility industry. Taqa’s strong balance sheet, predictable income, access to global capital markets and deep industry expertise enable it to play an active role in the UAE’s diversification strategy, putting a strong emphasis on clean sources. The company will invest and deploy new technology to ensure continued reliable and efficient supply of power and water and additional sustainable capacity to meet the demands of the UAE economy.”

The key leadership appointments as part of the deal are;

  • Jasim Husain Thabet as CEO and Managing Director of Taqa
  • Saeed Hamad Al Dhaheri becomes Deputy CEO
  • Stephen John Ridlington as the company’s Chief Financial Officer.
TAQA CEO MD
Jasim Husain Thabet, CEO and MD – TAQA

“Today marks the beginning of Taqa’s new journey, which will see us fully integrate our diverse asset portfolio and combine the talent and expertise of both organizations into a stronger company. We have created an entity that will be a key contributor to the socio-economic development of the UAE, and which has a strong international footprint that enables us to pursue growth opportunities in the GCC and beyond, all while rewarding our shareholders with sustainable dividend policy.

“Looking ahead, I’m confident that the combination of our enlarged base of power and water assets, diverse and talented workforce and strategic growth plans will enable us to capture exciting new opportunities now and in the years to come,” Mr. Thabet appended.


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