Gabal El Zeit deal nears finish line with USD 416 mn valuation

The long-awaited acquisition of the 580 MW Gabal El Zeit wind farm is entering the home stretch, with the UAE’s Alcazar Energy set to finalize its takeover of the site later this month, senior government officials tell EnterpriseAM. Alcazar’s acquisition is expected to total USD 416 mn — a significant jump from the previous c.USD 300 mn offer from the UK’s Actis.

We were initially told that Alcazar would wrap up the acquisition in mid-February at a price exceeding USD 420 mn.

The final price was determined based on new valuation standards recently adopted by the government, which take into account the full value of the project’s assets to reach a fair market price. Per the agreement, the Electricity Ministry will remain responsible for paying off the roughly USD 350 mn loan to build the farm and the state will purchase output at USD 0.03 per kWh, paying mostly in USD.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)