SHUAA Capital sells 20% stake in MIPCO to Japanese group Sojitz

By Shilpa Annie Joseph, Official Reporter
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UAE-based leading asset management and investment banking platform SHUAA Capital has sold its 20 percent equity stake in Mirfa International Power and Water Company (MIPCO), to the leading Japanese group, Sojitz Corporation (Sojitz).

MIPCO was established in Abu Dhabi in 2014 as the tenth project in the private power and water sector launched under the Department of Energy’s privatization program. The company developed and operates a power generation and seawater desalination plant in the Al Dhafra region, with a net power capacity of 1600MW and a net water capacity of 52.5 MIGD, contracted under the Power and Water Purchase Agreement (PWPA).

According to the company statement, “Having originally invested in MIPCO in 2015 to support the development phase of the project, this divestment is in line with the Group’s planned exit strategy.”

MIPCO’s shareholders also include the Abu Dhabi National Energy Group (TAQA) and Engie SA, a French low-carbon energy and services group, both of which will continue to be shareholders (with 60 percent and 20 percent stakes respectively).

Sojitz is a multinational trading and investment group with approximately $21 billion in assets across a variety of sectors that is listed on the Tokyo Stock Exchange. It has over 40 power projects in more than 14 countries worldwide, making it an ideal partner for MIPCO in the future.

Fawad Tariq Khan
Fawad Tariq Khan
MD & Head of Investment Banking
SHUAA Capital

“With its experience in international power, Sojitz represents an ideal partner for MIPCO going forward, bringing operational expertise as a strategic investor. So, we are delighted to be able to divest our stake to Sojitz, in line with our planned exit horizon, having supported the development of the MIPCO plant which will deliver power and water security across the UAE.”

“In addition to acquiring shares in the project which has successfully achieved commercial operation, this transaction is also important for us from the perspective of establishing a business relationship with SHUAA which has a large presence in the financial sector in the Middle East where Sojitz is aiming to continue and further expand its business,” commented Mr. Masakazu Hashimoto, COO of Sojitz’s Infrastructure & Healthcare Division.

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