Taqa announces complete of sale of Shuweihat shares to Sumitomo

Abu Dhabi: The Abu Dhabi National Energy Company (Taqa) said on Sunday it has completed all contractual procedures regarding its sale of a 20 per cent interest in Shuweihat CMS International Power Company (Scipco) and a 50 per cent stake in Shuweihat O&M Limited Partnership for $173.95 million to Japan's Sumitomo Corporation.

"The revenues and profits of these transactions will be included in the company's third quarter financial results," Taqa said in a filing to the Abu Dhabi Securities Exchange (ADX) where it's listed.

On a bullish ADX, Taqa's shares were buoyed by the news and were trading at Dh2.45 a share in afternoon trade yesterday, up 3.38 per cent.

On September 4, Sumitomo announced that it had successfully won the international bid and reached a share purchase agreement with Taqa "on the right to own and operate Shuweihat S1 power and water project in Abu Dhabi". The S1 plant is located in the Shuweihat areas, approximately 250 km west of Abu Dhabi. All electricity and water produced by S1 Plant is sold under the long term power and water purchase agreement to Abu Dhabi Water and Electricity Company (Adwec).

Following the part share sale to Sumitomo, Taqa's share in Scipco is down to 54 per cent.