Utility large Taqa takes over Abu Dhabi water firm SWS Holding in Dh1.7b deal

Taqa will purchase all excellent shares of SWS Holding for Dh1.7 billion, with 50 per cent of the consideration to be paid upon completion and the remaining one yr after completion. Taqa will make a further fee in 2024 linked to internet income generated throughout 2023.

“This strategic transaction, at such enticing phrases, represents an especially optimistic consequence for Taqa and its shareholders, given the impression it would create on Taqa’s monetary efficiency while permitting environment friendly use of shareholders capital to fund future development,” the corporate mentioned in a press release.

SWS Holding is ‘extremely complementary’ to Taqa’s current portfolio and can add round Dh16 billion to its current regulated asset worth of about Dh75 billion.

“Two years in the past, we set out our development ambitions in a 2030 technique, and since then we’ve got been delivering in opposition to our guarantees,” mentioned Jasim Husain Thabet, Taqa’s Group CEO and Managing Director. “This transaction is a logical extension of our regulated asset base into wastewater networks and therapy, which in Abu Dhabi is topic to the identical construction of regulation and the identical rules as our current energy and water transmission and distribution enterprise.

“The brand new enterprise will present a considerable increase to our regulated asset base and related steady long-term earnings.”

In Could, Taqa entered a $2.4 billion take care of ADNOC for the supply of sustainable water options to the latter’s onshore operations.

The transaction is to finish this yr. Taqa is owned 90.03 per cent by Abu Dhabi Energy Company (ADPower) and seven.30 per cent by Multiply Group.