TAQA mulls asset sales following strategic review
Abu Dhabi state energy firm could offload assets, Reuters says.
Abu Dhabi National Energy Co (TAQA) is mulling assets sales this year and has picked two international firms to oversee the process, reports say.
The state controlled oil and gas explorer and power plant owner has hired Australian investment bank Macquarie and McKinsey & Co as advisers, Reuters said citing two unnamed sources.
"Some of TAQA's assets no longer fit into its strategy after the company's growth plans were rebalanced," one of the sources said, adding that the sales would reduce debt leverage and improve cash flow.
"Some assets could be disposed of before the year-end," a second source said.
Both sources declined to be named because the matter is not yet public. A TAQA spokesman declined to comment.
It is not clear what type of asset sales TAQA will pursue, if any. The company has been undergoing a strategic review under new chief operating officer Edward LaFehr, who took charge earlier this year.
In August it ended talks to buy a 50% stake in the Sulaymaniyah power station in Iraq's Kurdistan region, saying the project did not match its growth strategy.
In July a TAQA-led consortium pulled out of a $1.6 billion deal to buy two hydroelectric power plants from India's Jaiprakash Power Ventures.