Abu Dhabi is contemplating the sale of a stake in its largest state-owned facility as the oil-rich emirate seeks to attract international investors to invest in some of its prominent assets, according to individuals familiar with the matter who asked not to be identified due to the private nature of the information. The government is working with a consultant to explore the sale of about 10% of the Abu Dhabi National Energy Company (Taqa), which could be valued at over $4 billion based on its current market price, according to data compiled by Bloomberg. Taqa's shares have declined by 5.6% since the beginning of the year, bringing its market capitalization to around $42 billion.
"The sale process could attract interest from large global utility companies and other financial investors," according to sources who expected initial non-binding bids to be submitted in May.
#### Transformation Plan
The government is pushing to convert Taqa, which monopolizes the distribution of electricity and water in Abu Dhabi, into a leading regional utility company. Last year, Abu Dhabi arranged a plan to transfer assets from the state-owned Abu Dhabi Power Corporation, known as ADPower, in exchange for shares. The sources indicated that the size of the stake being offered for sale from Taqa could change based on investor interest, and negotiations continue without certainty that they will lead to a deal. A representative from Taqa was not immediately available for comment.
Abu Dhabi, the capital of the United Arab Emirates, aims to attract foreign capital by selling stakes in some of its largest companies. In recent years, international and local funds have invested more than $20 billion in the operations of the state-owned oil producer, ADNOC. In March, insiders reported that Taqa is also considering options for its oil and gas assets, including a potential sale.
