Abu Dhabi’s ADQ monetises minority stake in Taqa

Transaction aims to enable increased free float in Taqa and Abu Dhabi’s capital markets

Established in 2018, ADQ is an Abu Dhabi-based investment and holding company. Bloomberg

Abu Dhabi's holding company ADQ agreed to monetise a stake of 8.6 per cent in Abu Dhabi National Energy Company, better known as Taqa, in line with its strategy of building a balanced and diversified portfolio, ADQ said in a statement on Tuesday.

ADQ, which did not disclose the total value of the transaction, said it monetised the minority stake to Multiply Group, Abu Dhabi Pension Fund and other investors.

However, in a statement to Abu Dhabi Securities Exchange, Multiply Group said it has acquired a 7.3 per cent stake in Taqa in a deal worth Dh10 billion ($2.72bn).

Abu Dhabi-listed Taqa is a leading utilities firm in Europe, the Middle East and Africa and a key player in driving the UAE's clean energy transition.

It has significant investments in power and water generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations.

“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,” said Mohamed Alsuwaidi, managing director and chief executive of ADQ.

“We also believe this transaction will support our aspiration to facilitate increased free float in Taqa and Abu Dhabi’s capital markets,” Mr Alsuwaidi added.

Established in 2018, ADQ is an Abu Dhabi-based investment and holding company. Its investments span key sectors, including energy and utilities, food and agriculture, health care and life sciences, and transport and logistics, among others.

Taqa remains a key asset within ADQ’s energy and utilities portfolio, supporting its activities in accelerating the UAE’s clean energy transition while generating sustainable financial returns, the company said in a statement.

Operating in 11 countries, Taqa has recently acquired a controlling stake in Masdar’s renewable business, along with Abu Dhabi National Oil Company and Mubadala, which aims to become a global clean energy company with a more than 50-gigawatt capacity by 2030.

In June, Taqa made a secondary listing of nine bonds valued at $8.25bn on the Abu Dhabi Securities Exchange, the Arab world’s second-largest stock market by market value.

Together with the Emirates Water and Electricity Company, it also raised about $700 million through its first green bond to diversify funding sources earlier this year.

Its net profit attributable to the equity holders for 2021 rose to about Dh6bn ($1.63bn), from Dh2.8bn during the previous year.