Abu Dhabi’s TAQA To Invest Over $2 Billion In Adani Energy Solutions; Details Here

Abu Dhabi’s National Energy Co, TAQA, is looking to double down its investment in Gautam Adani’s thermal generation to transmission, clean energy and green hydrogen, sources were quoted as saying by The Economic Times.

TAQA, which is said to be one of the largest integrated utilities in Europe, West Asia and Africa, is keen to invest between $1.5 billion to $2.5 billion in Adani Group firms or in a single entity, the sources further informed.

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The Abu Dhabi company is looking to pick up a 19.9% stake in Adani Energy Solutions 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 Rs 91,660 crore with promoters owning a 68.28% stake. According to current market price, 20% stake would be valued at Rs 18,240 crore ($2.19 billion). Adani Energy Solutions stock was trading 2.99% higher at Rs 846.75 per share, at the time of writing this article.

TAQA has investments in power generation, transmission and distribution assets, upstream and midstream oil and gas operations. Its assets are spread across the UAE, Saudi Arabia, Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, the UK and the US.

The Abu Dhabi-based energy company owns and operates a 250 MW lignite-based thermal power plant in Neyveli in Tamil Nadu. The company, reportedly, has been planning to expand its portfolio in India  and even signed an agreement to buy two hydro projects from the Jaypee Group in 2014 for Rs 9,689 crore but the acquisition did not fructify and it decided to exit from the deal following a shift in global strategy.

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According to the ET report, TAQA had been meeting with several Indian private utilities before zeroing in on Adani. While, senior management meetings and technical due diligence are said to have taken place.

Adani Energy Solutions account for 22% market share in tariff-based competitive bidding (TBCB) projects. The company has applied for second licences in three locations — Saurashtra, Navi Mumbai and Bulandshahr. It’s also entered the smart metering segment with an order book of Rs 5,800 crore.