Dubai: French utility GDF Suez has sold a 40 per cent stake in Bahrain's Al Hidd power and water plant to Malaysia's largest independent power producer, Malakoff, to meet a regulatory requirement following GDF's acquisition of International Power.
GDF acquired International Power last year and the combined entity held 70 per cent in the Bahraini plant. Bahrain's government wanted GDF to reduce the stake to prevent the concentration of ownership.
"This partial sale of Hidd Power Co allows the combined International Power-GDF Suez entity to comply with the kingdom's regulatory requirements," GDF Suez and Malakoff said
No financial details of the transaction was provided.
The Al Hidd plant is among the largest independent water and power plant in Bahrain, providing about 39 per cent of the kingdom's power needs and 62 per cent of its water requirements, according to GDF Suez's statement.
