Taqa shares rise after Qatari bid for US wind farm share
Shares of Abu Dhabi National Energy Company, or Taqa, jumped yesterday after it said it had received a bid from a Qatari buyer for its share in a US wind farm. Taqa closed 15 per cent higher at Dh0.46 a share on the ADX yesterday.
Nebras Power, part-owned by Qatar Holding, has placed an offer to purchase Taqa’s 50 per cent interest in the Lakefield wind power plant located in Minnesota. “Lakefield is the only wind power asset in our portfolio [making it] a non-core asset,” said a Taqa spokesman. Taqa has been battered by lower oil prices, reporting losses of Dh581 million for the first nine months of this year.
The company purchased the wind plant two years ago from a subsidiary of Electricite de France, but it began exploring options for divestment in the beginning of this year. Although the company declined to disclose the proposed amount from Nebras, Taqa said the Lakefield investment had a “carrying value” of Dh147m as of the end of September.
The 137 wind turbine project has the capacity to produce over 200 megawatts of electricity – which is sold to the local utility company under a 20-year power purchase agreement.
The deal, subject to regulatory and government approval, is expected to be completed in the first quarter of next year.
Follow The National’s Business section on Twitter
Published: November 25, 2015 04:00 AM