10 April 2011
MUSCAT: SMN Power Holding, which owns two major independent power projects with a combined generation capacity of 1,346MW, is planning to divest 35 per cent stake in favour of investing public before the year-end.
SMN Power owns the 668MW-Al Rusayl Power Company and SMN Barka Power Company -- an independent water and power project (IWPP) with a power generation capacity of 678MW and 120,000 cubic metres per day of desalinated water.
The holding firm is diluting its stake in line with a contractual commitment with the government, Johan Van Kerrebroeck, chief executive of SMN Power Holding told Times of Oman.
"However, it is quite early (to comment on the IPO plans). It takes another six weeks to two months (for us to prepare the groundwork)," he added.
He also noted that a financial advisor will conduct a due diligence for determining the offer price. "The size of the public offer will depend on the valuation."
However, sources said the company is likely to float the initial public offering (IPO) much before the end of this year, which is the deadline set by the government for the IPO. Sources also added that the management has initiated early ground work for the public offer.
SMN Power Holding is a joint venture of Kahrabel FZE, Abu Dhabi-based Mubadala Development Company and National Trading Company. Kahrabel and Mubadala have 47.5 per cent each in SMN Power Holding, while the remaining 5 per cent ownership is with the local firm National Trading Company.
Barka 2, a green field IWPP, was completed in two different phases. The early power generation with a capacity of 363MW started towards the end of 2008. And the second phase was completed later, taking the total power and water generation capacity to 678MW and 120,000 cubic metres per day, respectively.
The Barka 2 plant is located adjacent to the existing 450MW Barka 1 plant, which itself is located 50km away from Muscat, on the Batinah coast.
In fact, Barka 2 was the sixth independent power project in the Sultanate, after Manah, Al Kamil, Barka 1, Dhofar and Sohar.
However, Dhofar Power shares were bought back by Electricity Holding Company last year through an open offer to make it a fully-owned state-owned firm. All these independent power companies have offloaded 35 per cent stake in favour of investing public through initial public offerings, in line with a contractual obligation.
The Rusayl power project, which used to be owned by the government, was sold to developers of the Barka 2 power project in 2006 through a competitive bid process.
MUSCAT: SMN Power Holding, which owns two major independent power projects with a combined generation capacity of 1,346MW, is planning to divest 35 per cent stake in favour of investing public before the year-end.
SMN Power owns the 668MW-Al Rusayl Power Company and SMN Barka Power Company -- an independent water and power project (IWPP) with a power generation capacity of 678MW and 120,000 cubic metres per day of desalinated water.
The holding firm is diluting its stake in line with a contractual commitment with the government, Johan Van Kerrebroeck, chief executive of SMN Power Holding told Times of Oman.
"However, it is quite early (to comment on the IPO plans). It takes another six weeks to two months (for us to prepare the groundwork)," he added.
He also noted that a financial advisor will conduct a due diligence for determining the offer price. "The size of the public offer will depend on the valuation."
However, sources said the company is likely to float the initial public offering (IPO) much before the end of this year, which is the deadline set by the government for the IPO. Sources also added that the management has initiated early ground work for the public offer.
SMN Power Holding is a joint venture of Kahrabel FZE, Abu Dhabi-based Mubadala Development Company and National Trading Company. Kahrabel and Mubadala have 47.5 per cent each in SMN Power Holding, while the remaining 5 per cent ownership is with the local firm National Trading Company.
Barka 2, a green field IWPP, was completed in two different phases. The early power generation with a capacity of 363MW started towards the end of 2008. And the second phase was completed later, taking the total power and water generation capacity to 678MW and 120,000 cubic metres per day, respectively.
The Barka 2 plant is located adjacent to the existing 450MW Barka 1 plant, which itself is located 50km away from Muscat, on the Batinah coast.
In fact, Barka 2 was the sixth independent power project in the Sultanate, after Manah, Al Kamil, Barka 1, Dhofar and Sohar.
However, Dhofar Power shares were bought back by Electricity Holding Company last year through an open offer to make it a fully-owned state-owned firm. All these independent power companies have offloaded 35 per cent stake in favour of investing public through initial public offerings, in line with a contractual obligation.
The Rusayl power project, which used to be owned by the government, was sold to developers of the Barka 2 power project in 2006 through a competitive bid process.
© Times of Oman 2011
