Abu Dhabi is weighing the sale of a stake in its biggest state-owned utility, as the oil-rich emirate continues to bring in international investors to some of its marquee assets, people familiar with the matter said.
The government is working with an adviser as it considers selling about 10 percent of Abu Dhabi National Energy Co., according to the people, who asked not to be identified because the information is private. The stake in the company, known as Taqa, could be worth more than $4 billion based on its current market price, data compiled by Bloomberg show.
Shares of Taqa have fallen 5.6 percent this year, giving it a market value of about $42 billion. The sale could attract interest from large global utility companies and other financial investors, the people said. Initial non-binding bids are expected to be submitted in May, according to the people.
The government has been pushing to turn Taqa, which has a monopoly on power and water distribution in Abu Dhabi, into a regional utility champion. Last year, Abu Dhabi orchestrated a plan for Taqa to receive assets from state-owned holding company Abu Dhabi Power Corp., known as ADPower, in return for stock.
The size of the Taqa stake being sold could change depending on investor interest, the people said. Deliberations are ongoing, and there’s no certainty they will lead to a transaction, according to the people. A representative for Taqa couldn’t immediately comment.
Abu Dhabi, the capital of the United Arab Emirates, has been seeking to attract foreign capital by selling stakes in some of its largest companies. In recent years, international and local funds have invested more than $20 billion in the operations of state-owned oil producer Adnoc. Taqa is also considering options for its oil and gas assets, including a potential sale, people familiar with the matter said in March.
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