The GCC Energy Fund led consortium acquires controlling stake in Dhofar Power Company
The Dubai based GCC Energy Fund has announced that a consortium of investors, led by the Fund, has acquired a controlling interest in Oman’s Dhofar Power Company (DPC).
Under the terms of the deal, the consortium comprising of the GCC Energy Fund, Darbat Power of Oman and Malakoff Berhad, a Malaysian power company, has acquired a 46 percent controlling stake in DPC, a uniquely placed integrated power utility, from its previous largest stakeholder, the US-based PSEG Global.
The GCC Energy Fund, the Middle East’s first private equity fund focused on the region’s energy sector, played the lead role in identifying the opportunity, structuring the deal and bringing together the major participants.
DPC provides power to the south of Oman, including the country’s second largest city Salalah, and is one of the few private utilities in the region involved in power generation, transmission as well as distribution. The company started commercial operations in May 2003 with a generation capacity of 242 megawatts and high voltage transmission lines totaling 2,000 km in length, servicing a customer base of 54,000. For over three years DPC has been run efficiently with a goal of providing reliable service to its customers and to ensure the highest standards of safety in its operations.
“We are delighted to announce the successful completion of this transaction and look forward to playing a central role in the growth of DPC, both within Oman as well as regionally,” said Adil Toubia, Chief Executive Officer, the GCC Energy Fund.
“Over the past few years the power requirements of DPC’s customer base and that of South Oman have risen considerably and offer significant opportunities for growth. There is a strong management team in place and we are fully committed to supporting it in pursuing such opportunities and meeting the company’s long term business objectives” he added.
Mr. Tariq Al-Aujaili, a Director on the board of DPC said “We are very pleased to have the GCC Energy Fund invest in DPC and value the contribution that it will make towards the growth of the company.”
The GCC Energy Fund was launched in 2005 as a private equity fund focused on making investments in companies and projects across a range of industries within the energy sector.
“Our goal is to achieve sustainable growth for all the companies we invest in and we are already delivering on that objective through transactions like this one,” added Toubia.