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Shuaa Capital sells 20% stake in MIPCO to Japanese investor

Shuaa Capital sells 20% stake in MIPCO to Japanese investor
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Dubai – Mubasher: Shuaa Capital has sold its 20% equity stake in Mirfa International Power and Water Company (MIPCO) to Sojitz Corporation (Sojitz), a leading Japanese group.

Established in 2014 in Abu Dhabi, MIPCO was the 10th project in the private power and water sector launched under the Department of Energy's privatisation programme, according to a press release on Thursday.

In 2015, Shuaa has invested in MIPCO to support its $1.5 billion development phase.

MIPCO's shareholders also include the Abu Dhabi National Energy Group (TAQA) and Engie SA, a French low carbon energy and services group, with 60% and 20% stakes, respectively.

TAQA and Engie SA will remain shareholders in MIPCO with Sojitz Corporation acquiring Shuaa's 20% equity stake.

MIPCO set up and operates a power generation and seawater desalination plant in the Al Dhafra region in Abu Dhabi, with a net power capacity of 1600MW and a net water capacity of 52.5 MIGD.

Sojitz, a multinational trading and investment group and listed on the Tokyo Stock Exchange, has more than 40 power projects in over 14 countries globally.

The Managing Director and Head of Investment Banking at Shuaa Capital, Fawad Tariq Khan, commented: “With its experience in international power, Sojitz represents an ideal partner for MIPCO going forward, bringing operational expertise as a strategic investor.”

Meanwhile, the COO of Sojitz's Infrastructure & Healthcare Division, Masakazu Hashimoto, said: “This transaction is also important for us from the perspective of establishing a business relationship with Shuaa which has a large presence in the financial sector in the Middle East where Sojitz is aiming to continue and further expand its business."