TAQA Buys 40% of Sohar Aluminium for $400 Million (Update1)

DUBAI, July 1 -- Abu Dhabi National Energy Co., known as TAQA, agreed to buy a 40 percent stake in Sohar Aluminium Co. of Oman from Abu Dhabi Water and Electricity Authority for $400 million.

"Our track record in power generation means that we are well placed to add value to such an energy-intensive business as aluminum," TAQA's Chief Executive Officer Abdulla Saif al- Nuaimi said in a statement today. "This is a high-quality operation and is not only expected to increase TAQA's cash flow, but provides entry for us into the Sultanate of Oman."

Abu Dhabi Water owns 51.05 percent of TAQA, which has oil and gas production assets and utilities in the Middle East, North America, the North Sea and India. Its TAQA North unit bought a portion of Suncor Energy Inc.'s assets in west central Alberta in Canada for C$285 million, it said on June 23.

Sohar Aluminium's other shareholders are Oman Oil Co., which holds 40 percent, and Rio Tinto Group, with 20 percent, according to Sohar's company's website.