Abu Dhabi National Energy Company, an international energy and water company, has entered into a definitive agreement to acquire Sustainable Water Solutions Holding Company for AED1.7 billion.
Under the terms of the agreement, Taqa will acquire all outstanding shares of SWS Holding, with 50% of the consideration to be paid upon completion and the remaining 50% to be paid one year after completion.
Taqa will make an additional payment in 2024 linked to net profits generated during 2023. This strategic transaction, at such attractive terms, represents an extremely positive outcome for Taqa and its shareholders, given the impact it will create on Taqa’s financial performance whilst allowing efficient use of shareholders capital to fund future growth.
SWS Holding is highly complementary to Taqa’s existing portfolio and will add approximately AED16 billion to Taqa’s existing regulated asset value of approximately AED75 billion. This will enhance Taqa’s highly predictable and secure cashflow profile as well as its long-term earnings. The transaction is expected to generate significant synergies which will create value for Taqa and its shareholders.
The establishment of SWS Holding was announced in May 2023 with an aim to deliver sustainable water solutions through a focus on resource recovery and water circularity that will benefit industries and communities.
The newly created SWS Holding took ownership of Abu Dhabi Sustainable Water Solutions Company, formerly known as Abu Dhabi Sewerage Services Company, the main entity behind all wastewater collection, treatment, and reuse in the Emirate of Abu Dhabi.
The addition of SWS Holding’s specialised solutions to Taqa’s comprehensive portfolio will create a vertically integrated player with strong capabilities in delivering high-quality water treatment solutions as well as a shared commitment to operational efficiency and customer service excellence.