Abu Dhabi National Energy Company (TAQA) has announced the completion of its transaction with Abu Dhabi Power Corporation (ADPower), creating one of the largest utility companies in the Europe, the Middle East and Africa (EMEA) region
The transaction ? which was first proposed by ADPower to the TAQA board of directors in February 2020 and received TAQA shareholder approval in April 2020 ? saw ADPower transfer the majority of its power and water generation, transmission and distribution assets to TAQA in exchange for 106,367,950,000 new shares.
With the completion of the transaction, TAQA, which is listed on the Abu Dhabi Securities Exchange (ADX), is now the UAE?s third-largest publicly traded company by market capitalisation and among the top-ten integrated utility companies in EMEA by regulated assets.
As a result of the transaction, ADPower will own 98.60 per cent of the entire issued share capital of TAQA. It is TAQA?s intention to seek an increase to the free float through a follow on public offering.
Mohamed Hassan Alsuwaidi, chairman of TAQA, said, ?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 utilities industry.?
According to Alsuwaidi, the initiative is in line with TAQA?s plan to ensure continued, reliable and efficient supply of power and water and additional sustainable capacity to meet the demands of the UAE economy.
Jasim Husain Thabet, CEO and managing director of TAQA, said, ?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 pursue growth opportunities in the GCC and beyond, all while rewarding our shareholders with a sustainable dividend policy.?
