Taqa acquires stake in US power plant

Dubai: Abu Dhabi National Energy Company is poised to complete the acquisition of a majority stake worth just under $1 billion (Dh3.68 billion) in a US based power plant within the coming 30 days, its chief executive said on Monday.

"This is a joint venture between three companies around a specific asset, a power plant," Peter Barker-Homek said. "We are the 85 per cent shareholder in the joint venture."

The company said its majority stake was part of its strategy to pick up distressed energy companies.

He said the minority stakeholders in the plant would include a company from the United States and Britain, but declined to name them. The new subsidiary will be called TAQA Gen-X.

Taqa will also buy back its own shares to fund an employee stock programme after purchasing debt for less than face value, Barker-Homek said.

"We have an employee stock ownership plan so we will be going into the market to cover that position," Barker-Homek said. The buyback will start next year, he added.

Taqa paid about $150 million to buy its own 30-year bonds with a face value of $200 million, Barker- Homek said. The company bought the debt because its value fell and "the spreads were incredible," he said.