By Andy Sambidge
Abu Dhabi energy company says deal for aluminium firm stake worth about $400m.
The Abu Dhabi National Energy Company (TAQA) on Wednesday announced a deal to take a 40 percent stake in Oman's Sohar Aluminium Company (SAC).
TAQA said it has signed an agreement with its majority shareholder, the Abu Dhabi Water and Electricity Authority (ADWEA), for the transfer of the stake.
The purchase price is approximately $400 million and the final terms are to be agreed between TAQA and ADWEA, the company said in a statement.
Completion of the transfer is subject to certain conditions and third party consents, it added.
SAC produces 360,000 tonnes of aluminium per annum and it also owns and operates a state of the art 1,000MW combined cycle captive power plant.
SAC is a joint venture between the Oman Oil Company, ADWEA and Rio Tinto Alcan.
Abdulla Saif Al-Nuaimi, CEO and managing director of TAQA, said: "The acquisition of these facilities at Sohar demonstrates our strategy of delivering stable cash flows and sustained long term growth.
"Our track record in power generation means that we are well placed to add value to such an energy intensive business as aluminium. This is a high quality operation and is not only expected to increase TAQA’s cash flow, but provides entry for us into the Sultanate of Oman.”