L’imad subsidiary increases Taqa stake to more than 98%

L’imad, Abu Dhabi’s newest sovereign wealth fund, reported its indirect holding in Abu Dhabi National Energy Company (Taqa) has exceeded 98 percent following a share buyout by a subsidiary.

Abu Dhabi Power Corporation, a subsidiary of L’imad, completed the purchase of 9.1 billion shares on Wednesday, increasing its holding in Taqa to 98.12 percent, Taqa said in a statement to the Abu Dhabi Securities Exchange.

The deal is estimated at AED21.6 billion ($5.9 billion), based on Taqa’s closing price of AED2.37 on Wednesday. The actual transaction price per share was not revealed.

Taqa’s shares are down almost 30 percent so far this year.

The shares were offloaded by 2PointZero Group, the Abu Dhabi-based investment company formed by the merger of Multiply Group, Ghitha Holding and the original 2PointZero under International Holding Company.

The transaction forms part of the company’s portfolio optimisation efforts, it said in a filing to the Abu Dhabi Securities Exchange.

The transaction is subject to regulatory approvals, it added.

L’imad was created in January by consolidating the eight-year-old ADQ and its $263 billion in assets, 25 investment companies and platforms, and more than 250 group subsidiaries.

The wealth fund is chaired by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the eldest son of UAE president Sheikh Mohammed. It manages assets in the UAE and internationally in sectors such as infrastructure and real estate, financial services, technology, urban mobility and smart cities.

2PointZero shares closed 3.8 percent higher at AED2.21 on Wednesday but are down more than 15 percent so far this year.

• Kuwait shortlists bidders to raise $7.5bn from pipeline stake sale
• Saudi IPO woes continue as contractor withdraws offering
• The Gulf’s SpaceX gamble is about to deliver in stratospheric fashion