TAQA looks to bet big on Adani's power business
TAQA) is looking to double down on 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 ₹91,660 crore with promoters owning a 68.28% stake. At current prices, a near 20% stake would be valued at ₹18,240 crore ($2.19 billion).
The stock ended flat on Thursday at ₹821.70.India Presence Mails sent to Adani Group and TAQA did not elicit a response till the time of going to press on Thursday. GQG Partners and its affiliates already own around 5.5% in Adani Energy Solutions as per June disclosures. 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.
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