According to individuals with knowledge of the situation, Abu Dhabi National Energy Co. PJSC (TAQA) is considering increasing its presence in India and taking a significant stake in Gautam Adani’s diverse power operations, which include thermal production, transmission, clean energy, and green hydrogen.
According to the sources, TAQA, one of the major integrated utilities in Europe, West Asia, and Africa and the second largest stock on the Abu Dhabi Securities Exchange (ADX), is eager to invest $1.5-2.5 billion in Adani Group companies or in a single organisation. However, both parties consider that TAQA and Adani Energy Solutions, formerly Adani Transmission, have the most potential for synergy in order to build a strategic partnership and collaborate on projects in North Africa and West Asia.
Through a combination of original investment in the business and secondary acquisition of shares from promoter family entities, TAQA is eager to acquire a stake of up to 19.9%. With promoters possessing a 68.28% interest, Adani Energy Solutions is currently valued at Rs 91,660 crore. A close to 20% share would be worth $2.19 billion at the current price of Rs 18,240 crore. The stock price on Thursday finished unchanged at Rs 821.70.
According to June disclosures, GQG Partners and its affiliates already possess around 5.5% of Adani Energy Solutions. Adani and Taqa did not respond to emails made to them.
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Significance of TAQA:
TAQA, which stands for energy in Arabic, was founded in 2005 and has investments in upstream and midstream oil and gas operations as well as assets for power generation, transmission, and distribution. Its holdings are dispersed throughout the United Arab Emirates, Saudi Arabia, Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, the United Kingdom, and the United States.
In Tamil Nadu’s Neyveli, TAQA is the owner and operator of a 250 MW lignite-based thermal power plant. It produces energy and sells it to the state’s electricity generation and distribution firm, Tamil Nadu Generation and Distribution Corp. (Tangedco). It is present in Himachal Pradesh thanks to its ownership of the majority of the state’s power plant owned by NCC Ltd.
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