#AbuDhabi Power to take control of utility TAQA in asset swap, creating $54.5 billion entity - Reuters

Abu Dhabi Power to take control of utility TAQA in asset swap, creating $54.5 billion entity - Reuters:

Abu Dhabi Power Corporation (ADPower) plans to take control of Abu Dhabi National Energy Company (TAQA) (TAQA.AD) in an asset swap deal that would create a combined utility with assets worth a total of around 200 billion dirhams ($54.5 billion).

ADPower, a public joint stock company that owns most of Abu Dhabi’s water and electricity assets, said on Monday it would transfer the majority of its water and electricity generation, transmission, and distribution companies to TAQA in return for 106,367,950,000 convertible shares in the latter.

After the conversion - contingent on the asset transfer being made - ADPower would own 98.6% of the entire issued share capital of TAQA. The offer implies an equity value for TAQA of 4.16 billion dirhams, said ADPower, wholly owned by the Abu Dhabi Development Holding Company.

Oil-rich Abu Dhabi has seen some of its largest firms merge in the last few years in response to an earlier oil price slump.