TAQA announces sale of stake in Shuweihat CMS International Power Company to Sumitomo Corporation
The Abu Dhabi National Energy Company PJSC (TAQA), a publicly listed company on the Abu Dhabi Securities Exchange (ADX: TAQA), announced that it has entered into a share purchase agreement with Sumitomo Corporation for the sale of a 20% interest in Shuweihat CMS International Power Company (SCIPCO) and a 50% interest in Shuweihat O&M Limited Partnership ("SOMLP"). The sale concludes an international competitive bid process launched by TAQA earlier this year.
SCIPCO owns the Shuweihat S1 plant (“S1 Plant”), a power generation and water desalination facility near Jebel Dhana, Abu Dhabi with a net production capacity of 1,500 megawatts of electricity and 100 million gallons of desalinated water a day. SOMLP is the company responsible for the management, operation and maintenance of the S1 Plant. The S1 Plant commenced commercial operations in June 2005.
“We were pleased with the high level of interest from world-class, international organizations looking to foster relations with TAQA and to expand into the power market in the United Arab Emirates through this competitive bid process. We look forward to partnering with Sumitomo and benefiting from their international expertise,” said Peter Barker Homek, TAQA's Chief Executive Officer.
Following this transaction, TAQA will retain a 54% interest in SCIPCO, Abu Dhabi Water & Electricity Authority (“ADWEA”) and International Power Plc (“IPR”) will continue to hold 6% and 20%, respectively. IPR will also retain its 50% interest in SOMLP.
The transaction is expected to close in September 2008.
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