L’imad takes over 2PointZero’s Taqa stake

Abu Dhabi’s L’imad has increased its stake in Taqa, with one of its indirect subsidiaries — Abu Dhabi Power Corporation (AD Power) — taking over International Holding Company’s investment arm 2PointZero’s entire stake in the firm, according to bourse disclosures from the seller (pdf) and the target company (pdf).

The details: The takeover saw AD Power buy just shy of 9.1 bn shares in Taqa, which would value the transaction at AED 21.5 bn, according to our calculations based on Taqa’s’ closing price yesterday.

Post-transaction: Taqa said the transaction will increase Abu Dhabi Power’s stake by 8.09%, taking L’imad's ownership to 98.12% of the utility’s issued share capital.

Why does it matter? 2PointZero said the sale is part of its ongoing portfolio-optimization strategy. The move continues the group’s active reshaping of its investment portfolio following the merger of Multiply, Ghitha, and 2PointZero last year into a listed platform focused on the energy and consumer sectors.

One consolidation move after another: Since L’imad joined the sovereign wealth fund scene towards the end of last year, Abu Dhabi has been consolidating assets under the investor. It folded ADQ into L’imad at the start of the year, after a similar move with state-backed mobility investor Cyvn Holdings. L’imad has also wasted no time getting involved on the international investment scene, taking part in Paramount’s takeover of Warner Bros, as well as an infrastructure investment fund with BlackRock’s GIP and Adnoc.

2PointZero has also stayed busy on the dealmaking front, acquiring a majority stake inItaly’s Isem Packaging, agreeing to buy US-based Midstream Partners in a USD 2.3 bn transaction, and entering India's renewables market through a joint venture with Adani Green Energy. The Taqa exit suggests capital could be redeployed into the next phase of that strategy.