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Tue 8 Apr 2008 03:35 PM

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Taqa plans $1.1bn bond sale

Abu Dhabi-controlled energy firm to sell convertible bonds to finance recent acquisition spree.

State-controlled Abu Dhabi National Energy Company (Taqa), a utility and petroleum producer, said on Tuesday it plans to sell as much as 4.15 billion dirhams ($1.13 billion) of convertible bonds.

Shareholders of the UAE-based company, that last year agreed on $11 billion of acquisitions from Canada to India, will meet next week to discuss the proposal, Taqa said, without giving further details about the planned sale.

Taqa Chief Executive Peter Barker-Homek said in December the company may sell convertible bonds this year to finance buyouts.

Last month, it said it was delaying a decision to sell the securities.

The company plans to triple the value of its assets to $60 billion by the end of 2012, from about $21 billion at the end of last year.

Taqa in November won Canadian approval to buy PrimeWest Energy Trust for C$5 billion ($4.98 billion) and the Canadian unit of Pioneer Natural Resource Company for $540 million.

The government of Abu Dhabi, the world's fifth-largest oil exporter, owns 75% of Taqa. The rest is publicly traded. (Reuters)