Shuaa Capital sells 20% stake in Abu Dhabi utility company to Japan's Sojitz

Mirfa International Power and Water operates a power generation and desalination plant in Al Dhafra

The divestment in the $1.5 billion project in which Shuaa invested in 2015, is part of the company's "planned exit strategy", it said in a statement. Jaime Puebla / The National

Dubai-based investment bank Shuaa Capital sold its 20 per cent equity stake in the Mirfa International Power and Water Company in Abu Dhabi's Al Dhafra region to Japan's Sojitz Corporation.

The disposal is part of the company's "planned exit strategy" in the $1.5 billion project in which Shuaa Capital invested in 2015, it said in a statement to the Dubai Financial Market on Thursday. It did not disclose the value of the deal.

"With its experience in international power, Sojitz represents an ideal partner for Mipco going forward, bringing operational expertise as a strategic investor," Fawad Khan, head of investment banking at Shuaa Capital, said.

Mipco operates a power generation and desalination plant in Al Dhafra that has a power capacity of 1.6 gigawatts and water generation capacity of 52.5 million gallons per day. The plant began operations in October 2017 and all of the power and water produced are sold to Emirates Water and Electricity Company under a long-term agreement that has 22 years left to run.

Other shareholders in the project include Abu Dhabi National Energy Company, also known as Taqa, which has a 60 per cent share, and France's Engie, which holds the remaining 20 per cent .

Sojitz has stakes in more than 40 power projects in over 14 countries as part of a $21bn portfolio across a number of sectors. The company is listed on the Tokyo Stock Exchange.

Shuaa Capital was advised on the deal by Standard Chartered Bank and law firm Linklaters.