UAE's Shuaa Capital sells 20% stake in utility firm to Japanese investor

MIPCO was set up in 2014 in Abu Dhabi and it operates a power generation and seawater desalination plant in the Al Dhafra region of the emirate

  
SHUAA Capital psc is the leading asset management and investment banking platform in the region. Image Courtesy: WAM

SHUAA Capital psc is the leading asset management and investment banking platform in the region. Image Courtesy: WAM

UAE-based asset management firm Shuaa Capital has divested its 20 percent equity stake in Mirfa International Power and Water Company (MIPCO), to Japanese group Sojitz Corporation (Sojitz).

The divestment is in line with the Group's planned exit strategy, Shuaa said in a statement. 

Utility giant MIPCO's shareholders also include the Abu Dhabi National Energy Group PJSC (TAQA) and Engie SA, the French low carbon energy and services group, both of which will remain shareholders (with 60 percent and 20 percent stakes respectively), Shuaa said.

Commenting on the sale of its stake, Fawad Tariq Khan, MD, Head of Investment Banking at Shuaa Capital, said, “With its experience in international power, Sojitz represents an ideal partner for MIPCO going forward, bringing operational expertise as a strategic investor.”

Shuaa Capital is yet to reveal the value of the deal.

MIPCO was set up in 2014 in Abu Dhabi and it operates a power generation and seawater desalination plant in the Al Dhafra region of the emirate, with a net power capacity of 1600MW and a net water capacity of 52.5 MIGD, contracted under the Power and Water Purchase Agreement (PWPA).

Sojitz is a multinational trading and investment group, listed on the Tokyo Stock Exchange, with assets of $21 billion across a number of sectors. It has 40 power projects in more than 14 countries globally.

Standard Chartered Bank acted as financial adviser on the transaction for Shuaa, with Linklaters appointed as its legal adviser.

(Writing by Seban Scaria; editing by Daniel Luiz)

(seban.scaria@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021

More From Equities