ADQ, the Abu Dhabi-based investment and holding company, is monetising 8.6 percent in Abu Dhabi National Energy Company (TAQA) to Multiply Group, Abu Dhabi Pension Fund and other prominent investors.
Bloomberg estimated the divestment was worth $3.6 billion for ADQ, which still retains 90 percent of shares. TAQA stock jumped nearly 11.38 percent to close at AED1.37 on Tuesday.
In a separate statement, Multiply Group, a tech-focused company which is a subsidiary of Abu Dhabi-based International Holding, said it has acquired 7.3 percent stake for AED10 billion dirhams ($2.7 billion). The investment is part of Multiply Group’s strategy to grow its utilities vertical.
TAQA, a company listed on the Abu Dhabi Securities Exchange, is a diversified utilities and energy group. It has significant investments in power and water generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations.
The company operates in 11 countries globally and along with ADNOC and Mubadala, has recently taken a controlling stake in Masdar’s renewable business. It aims to become a global leading clean energy company, targeting more than 50GW capacity by 2030.
Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ, said: “The transaction underlines our efforts to attract long-term institutional partners and leverage monetisation opportunities that ensure we generate sustainable capital growth and a balanced portfolio of diversified investments.
“We also believe this transaction will support our aspiration to facilitate increased free float in TAQA and Abu Dhabi’s capital markets.”
As a majority-owned portfolio company of ADQ serving as its key growth platform within the utility sector, TAQA remains a key asset within ADQ’s energy and utilities portfolio.
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