The Abu Dhabi National Energy Company PJSC (TAQA), a publicly listed company on the Abu Dhabi Securities Exchange (ADX: TAQA) today announced the signing of an agreement with its majority shareholder, the Abu Dhabi Water and Electricity Authority (ADWEA) for the transfer to TAQA of a 40% stake in Sohar Aluminium Company (SAC).
The purchase price of this stake is approximately US$400 million and the final terms are to be agreed between TAQA and ADWEA. Completion of the transfer is subject to certain conditions and third party consents.
SAC produces 360,000 tonnes of aluminium per annum at purities of p1020 and above. SAC also owns and operates a state of the art 1,000 MW combined cycle captive power plant. SAC is a joint venture between the Oman Oil Company, ADWEA and Rio Tinto Alcan.
H.E. Abdulla Saif Al-Nuaimi, Chief Executive Officer and Managing Director of TAQA, said: "The acquisition of these facilities at Sohar demonstrates our strategy of delivering stable cash flows and sustained long term growth. Our track record in power generation means that we are well placed to add value to such an energy intensive business as aluminium. This is a high quality operation and is not only expected to increase TAQA’s cash flow, but provides entry for us into the Sultanate of Oman.”