Dubai/London/Hong Kong: Allen & Overy LLP advised Energy Arabia (Enara), a consortium of Arab and Asian investors, on its majority purchase of the Jordanian government's power generating concern, Central Electricity Generating Company (CEGCO). The purchase, finalised on 20 September 2007, represents a landmark transaction in Jordan's privatisation program.
Enara, taking a 51% stake in CEGCO, is majority owned by private equity house Jordan Dubai Capital (an affiliate of Dubai-based international investment firm Dubai International Capital), through JD Energy, a wholly owned subsidiary dedicated to energy and infrastructure investments. Enara's other shareholders are leading Malaysian electricity generator Malakoff and Consolidated Contractors Company (CCC), one of the Middle East's largest construction companies.
The deal includes a cash payment of US$120 million and settling of over US$200 million of the state-owned company's debts. Under the deal, Enara acquires, through CEGCO, 1700 megawatts of power generating capacity from four large power stations in Aqaba, Rehab, Hussein and Risha and from four smaller power stations across the country, while the Jordanian government (together with the Social Security Corporation) retains 49% ownership.
The Allen & Overy team was led by partner Duncan Macnab, assisted by associates Sachin Karia, Neil Perrin and Stephanie Wilkinson. Jordan's Khalifeh & Partners provided local counsel to the Allen & Overy team and Ali Sharif Zu'bi Law Office advised the Government of Jordan.
Allen & Overy partner Duncan Macnab commented, "We are delighted to have advised Energy Arabia on this landmark transaction which will allow its shareholders to broaden their reach and bring much needed private investment into infrastructure in the region. This is just one of a number of recent M&A/private equity transactions for Allen & Overy in the region and illustrates the increasing appetite for infrastructure investment within the Middle East."
For further information, please contact Duncan Macnab (duncan.macnab@allenovery.com) on +971 (0)4 303 5602 or Dana Liparts (dana.liparts@allenovery.com) on +971 (0)4 303 5639.
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Allen & Overy in Dubai was named "Middle East Law Firm of the Year" and "UAE Law Firm of the Year" awards at the IFLR Middle East Awards 2006, and "Middle Eastern Law Firm of the Year" at the Chambers Global Awards 2006.
Allen & Overy in Dubai has 80 staff including 7 partners and 50 associates.
In this press release "Allen & Overy" means "Allen & Overy LLP" and/or its affiliated undertakings.
Any reference to a 'partner' means a member of Allen & Overy LLP or an employee of or consultant to Allen & Overy LLP who has equivalent standing and qualifications, or a member, shareholder, partner of or consultant to an affiliated undertaking who has equivalent standing and qualifications.
Allen & Overy LLP is a limited liability partnership registered in England and Wales with registered
number OC306763. It is regulated by the Solicitors Regulation Authority of England and Wales. Allen & Overy LLP is a multi-jurisdictional legal practice with lawyers admitted to practice in a variety of jurisdictions. The term partner is used to refer to a member of Allen & Overy LLP or an employee or consultant with equivalent standing and qualifications. A list of the members of Allen & Overy LLP and of the non-members who are designated as partners is open to inspection at its registered office, One Bishops Square, London, E1 6AO and at the above address.
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Dana Liparts
Business Development Manager
Allen & Overy LLP
www.allenovery.com
1603 API World Tower
Sheikh Zayed Road
P O Box 28831
Dubai United Arab Emirates
Dir +971 (0)4 303 5639
Tel +971 (0)4 332 3190
Fax +971 (0)4 332 3192
© Press Release 2007
