Taqa's Board of Directors has given its approval to acquire ADPower's utility assets. A convertible bond will be issued to fuel the transaction. Image Credit: Supplied

Abu Dhabi: The merger between Abu Dhabi’s utility giants is on.

The Board of Directors at Abu Dhabi National Energy Company (Taqa) have given the go ahead for a sale and purchase agreement of most of Abu Dhabi Power Corporation’s (ADPower) assets.

In a disclosure on Abu Dhabi Securities Exchange (ADX), Taqa said its board had met to discuss the acquisition of ADPower’s electricity and water assets and to move forward with the deal. The group now looks to get the transaction approved by shareholders at their annual general assembly taking place on April 29.

The board meeting also approved the issue of a mandatory convertible bond to ADPower for the transaction. The exchange ratio of the convertible bonds will be recommended at the April 29 annual general assembly.

A Dh200b behemoth

The proposed merger was first announced back in February when ADPower submitted an offer to Taqa in a deal that would see it transferring the majority of its water and electricity assets. With combined assets of Dh200 billion, the merger will create a Top 10 utility company within Europe, Middle East and Africa.

Under the deal, Taqa will retain its existing stock market listing, making the combined entity one of the largest listed on ADX.

“The proposed transaction is an integral part of Abu Dhabi’s overall strategy to optimise performance across the water and electricity sector,” Saif Mohammed Al Hajeri, Chairman of ADPower, had said when the proposed merger was submitted earlier this year.