Abu Dhabi's Taqa in $320m deal with Japanese co

HIGH POWER: TAQA is 75% owned by the government of Abu Dhabi. (Getty Images - for illustrative purposes only)

Abu Dhabi National Energy Company (TAQA) confirmed on Sunday it had closed a $320m deal for a 50 percent equity stake in the existing Caribbean portfolio of Marubeni Corporation (Marubeni), Japan’s largest trading company.  

TAQA, which is 75 percent owned by the government of Abu Dhabi, remained committed to seeking out acquisitions that offered stable cash flows and complimented the company’s existing experience and expertise, Peter Barker-Homek, CEO of TAQA, said in a release.

“The joint venture with Marubeni enhances our existing diversified energy portfolio and will act as a platform to explore multiple opportunities through long-term investment in the region,” he said.

The Marubeni portfolio has equity stakes in power generation and transmission facilities with a combined capacity of 2,300 megawatts in Jamaica, Trinidad and Tobago, and Curacao, the company said.

The purchase was made under a 50/50 joint venture focused on long-term investments in the energy sector in the region, it said.

TAQA’s role was operational, with its 50 percent interest represented at the board level at each facility and by holding key management positions.  

The portfolio included a 55.4 percent equity interest in Grand Bahama Power Company in Grand Bahama, and an 80 percent equity interest in Jamaica Public Service Company, which owns and operates ten generating facilities, including six hydroelectric plants in Jamaica.

It also consisted of a 39 percent equity interest in PowerGen, an independent power producer that supplies 80 percent of total electricity demand in Trinidad and Tobago, and a 25.5 percent equity interest in Curacao Utilities Company NV, which supplies electricity, steam and water to the Island Refinery, operated by Petroleos de Venezuela SA in Curacao, Netherlands Antilles.

TAQA, one of the vehicles used by Abu Dhabi to invest oil export revenues, has a global asset base of AED86bn ($24 bn).

 

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