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Abu Dhabi National Energy Company (TAQA), the UAE's biggest power producer, will acquire SWS Holding, an Abu-Dhabi based water solutions company, for 1.7 billion dirhams ($463 million).
Sustainable Water Solutions Holding Company (SWS Holding) was set up earlier this year and owns Abu Dhabi Sustainable Water Solutions Company (ADSWS), the main entity behind all wastewater collection, treatment, and reuse in Abu Dhabi.
Under the terms of the agreement, TAQA will acquire all outstanding shares of SWS Holding for AED 1.7 billion, with 50% of the consideration to be paid upon completion and the remaining 50% to be paid one year after completion. The energy company will make an additional payment in 2024 linked to net profits generated during 2023, it said in a statement on Wednesday.
SWS Holding is "complementary to TAQA’s existing portfolio" and will add approximately AED 16 billion to its existing regulated asset value of approximately AED 75 billion, it said.
The transaction is expected to be completed this year, subject to obtaining regulatory and relevant third-party approvals.
Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: "By bringing the management of recycled water together with TAQA’s water desalination activity and our recycled water network, we can do even more to support the net-zero target by 2050.”
The UAE, which is hosting the UN’s major climate summit COP28 later this year, has declared a target of net-zero carbon emissions by 2050.
Last year, TAQA bought a 43% stake in the renewable energy company Masdar, while Abu Dhabi National Oil Co. (ADNOC) took a 24% stake. TAQA will front Masdar’s solar and wind power business, while ADNOC will lead its green hydrogen segment.
TAQA is owned 90.03% by Abu Dhabi Power Corporation (ADPower) and 7.30% by Multiply Group.
(Reporting by Brinda Darasha; editing by Seban Scaria)
