Abu Dhabi – Mubasher: International investors are expected to show greater interests in UAE and regional markets due to the kind of transactions that develop and deepen these markets, leading to greater investments flows.
“This is part of a region-wide trend for government-related entities to inject their assets into public markets,” said senior executive officer and board director of ADS Investment Solutions (ADSI), Dr Ryan Lemand, commenting on the offer of Abu Dhabi Power Corporation (ADPower) to transfer the majority of its assets to Abu Dhabi National Energy Company (TAQA).
The senior executive officer of Abu Dhabi-based wealth and asset manager added: “The transaction will give equity investors greater access to key utilities in Abu Dhabi. It serves to deepen the pool of listed assets on the Abu Dhabi Securities Exchange, and the next step could be to increase the free float of various listed companies, including TAQA. These kinds of transactions can be a catalyst for a virtuous circle in liquidity.”
On Monday, TAQA has received an offer from ADPower to acquire the majority assets of ADPower’s water and electricity generation, transmission, and distribution companies.
The transactions would create a new regional leading water and electricity company, which would be one of the largest utility companies in the GCC and a top 10 integrated utilities player in Europe, the Middle East, and Africa (EMEA) region by regulated assets.
