TAQA’s board of directors have approved to acquire most of ADPower’s water and electricity assets
TAQA (Abu Dhabi National Energy Company) has said that its board of directors have approved of the sale and purchase agreement of most of Abu Dhabi Power Corporation’s (ADPower) assets.
The proposed merger was initially announced in February when ADPower submitted an offer to TAQA in a deal that would have transferred the majority of its water and electricity assets. It has been reported that the assets, worth $32 billion as of the end of 2018, together detailed a net income of $1.3 billion.
In a statement to Abu Dhabi Securities Exchange (ADX), TAQA said that its board of members met to discuss the acquisition of ADPower’s electricity and water assets and move forward with the deal. The group is now looking at receiving formal confirmation of the transaction from its shareholders at their annual assembly which will take place on April 29.
The board meeting has also approved the issue of a mandatory convertible bond to ADPower for the transaction. The exchange ratio of the convertible bonds will be recommended at the annual general assembly; it has been reported.
According to the terms of the deal, TAQA will retain its existing stock market listing, making the combined entity one of the largest listed on ADX and a top 10 integrated utilities player in the EMEA region, ADPower said in a statement.