TAQA looks to bet big on Adani’s power business with $2 billion investment
Abu Dhabi National Energy Co. PJSC (TAQA) is looking to double down in India and is evaluating a large exposure in the expansive power businesses of Gautam Adani that span thermal generation to transmission, clean energy and green hydrogen, said people aware of the matter. TAQA, among the largest integrated utilities in Europe, West Asia and Africa and also the second largest stock on Abu Dhabi Securities Exchange (ADX), is keen to deploy $1.5-2.5 billion in Adani Group firms or in a single entity, said the sources mentioned above.
However, both sides believe there is maximum synergy between TAQA and Adani Energy Solutions, formerly Adani Transmission, to forge a strategic alliance and work together on projects in North Africa and West Asia. TAQA is keen to pick up a stake of as much as 19.9% through a combination of primary infusion into the company and the secondary purchase of shares from promoter family entities. The current value of Adani Energy Solutions is Rs 91,660 crore with promoters owning a 68.28% stake.
At current prices, a near 20% stake would be valued at Rs 18,240 crore ($2.19 billion). The stock ended flat on Thursday at Rs 821.70.India presence GQG Partners and its affiliates already own around 5.5% in Adani Energy Solutions as per June disclosures. Mails sent to Adani and Taqa did not generate a response.
Established in 2005, TAQA, which means energy in Arabic, has investments in power generation, transmission and distribution assets, as well as upstream and midstream oil and gas operations. Its assets are spread across the UAE, Saudi Arabia, Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, the UK and the US. In India, TAQA owns and operates a 250 MW lignite-based thermal power plant in
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