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Abu Dhabi-based energy firm Taqa plans to sell more shares after it completed an asset-transfer deal with its parent, government-owned ADPower, that creates a utility giant in the Gulf Arab region.
Abu Dhabi National Energy Co., as Taqa is officially known, also appointed Jasim Husain Thabet as chief executive officer and managing director, it said Wednesday in a statement. Thabet was CEO of ADPower, which owns 98.6% of Taqa’s issued shares.
The asset-transfer deal makes Taqa the third-largest listed company in the United Arab Emirates in terms of market capitalization. It acquired most of ADPower’s assets for generating, transmitting and distributing power and water, in exchange for 106 billion new shares, according to the statement.
Taqa intends to seek an increase to the free float through a follow-on public offering, it said.
Abu Dhabi, the capital and largest emirate of the UAE, has been promoting mergers and consolidations among government-owned banks and investment funds to boost its oil-dependent economy. Crude prices have dropped 37% from last year, and the coronavirus pandemic adds stiffer headwinds to the emirate’s growth.
Taqa has 23 gigawatts of power-generation capacity globally, with assets in Canada, Ghana, India, Iraq, the U.S. and several other countries, it said. The company owns all of Abu Dhabi’s power and water transmission and distribution businesses, and it has water-desalination capacity of 916 million imperial gallons per day.
Taqa also announced the appointment of Saeed Hamad Al Dhaheri as deputy CEO and Stephen John Ridlington as chief financial officer.
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