Abu Dhabi – Mubasher: Abu Dhabi National Energy Company (TAQA) has entered into a definitive agreement to acquire Sustainable Water Solutions Holding Company (SWS Holding) at a value of AED 1.70 billion.
The transaction will boost TAQA’s comprehensive portfolio and enhance its cash flow profile as well as its long-term earnings, according to a press release.
The newly-established SWS Holding took ownership of Abu Dhabi Sustainable Water Solutions Company (ADSWS), which was formerly known as Abu Dhabi Sewerage Services Company (ADSSC).
SWS Holding is complementary to TAQA’s existing portfolio and will add nearly AED 16 billion to the listed group's existing regulated asset value of approximately AED 75 billion.
Under the agreement, TAQA will pay 50% of the total value upon completing the acquisition, while the remaining amount will be paid one year after the process.
Subject to obtaining regulatory approvals, the transaction is projected to be concluded in 2023.
Jasim Husain Thabet, Group CEO and Managing Director of TAQA, commented: “The strategic acquisition of SWS Holding is an important step in TAQA’s accelerated delivery of its growth agenda, backed by our shareholders."
“This transaction is a logical extension of our regulated asset base into wastewater networks and treatment, which in Abu Dhabi is subject to the same structure of regulation and the same principles as our existing power and water transmission and distribution business,” Thabet added.
He noted: “The new business will provide a substantial boost to our regulated asset base and associated stable long-term earnings.”
Ahmed Al Shamsi, CEO and Managing Director of SWS Holding, said: “The prospect of becoming part of TAQA as a national champion with great sustainability aspirations is compelling and will allow us to leverage our combined strengths, fostering increased collaboration and delivering improved services in sustainable water management.”
In the first three months (3M) of 2023, TAQA posted higher net profits attributable to the owners at AED 11.57 billion, compared to AED 1.97 billion in 3M-22.
