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Enersol to buy USD 270 mn stake in Gordon: Enersol, a joint venture between Adnoc Drilling and Alpha Dhabi, is set to become a majority shareholder in US Gordon Technologies by raising its stake in the oil engineering firm in a USD 270 mn transaction, according to statement (pdf). Enersol will purchase an additional 42.2% stake, bringing the size of its stake to 67.2%.
What’s next? Enersol plans to pay about 80% of the additional stake upon closing, which will follow regulatory sign off, while the remaining 20% will be paid over the next two years, subject to meeting specific performance conditions, the companies said.
Gordon will soon launch domestic operations: Gordon has established its facility in Abu Dhabi, and is planning to kick off operations in the coming weeks. The US-based provider of measurement while drilling (MWD) technology obtained a commercial license from Abu Dhabi’s Department Of Economic Development in December last year to set up its business in the emirate.
Background: In January, Alpha Dhabi transferred its 25% stake in Gordon Technologies, valued at around USD 180 mn, to Enersol, marking the JV’s first investment.
About Enersol: Adnoc Drilling and Alpha Dhabi Holding formed the JV committing up to USD 1.5 bn for global investments in energy technology and the enhancement of tech-enabled energy services. Adnoc Drilling holds a 51% majority share in Enersol, while Alpha Dhabi holds the remaining 49%.
WATCH THIS SPACE- More Enersol acquisitions to come: Enersol is in the final stages of acquiring controlling stakes in three oilfield services technology companies specializing in the precision manufacturing, completion, and intervention segments, with the transactions expected to be finalized in 3Q 2024, Adnoc Drilling CFO Youssef Salem confirmed to EnterpriseAM UAE.
Enersol wants companies that can boost its diversification efforts: “A major driver of investment decisions will be the ability of those investments to support the UAE’s wider energy security ambitions, net zero agenda and ongoing economic diversification efforts,” the statement reads.
OTHER M&A NEWS-
Ras Al Khaimah White Cement to finalize stake sale next week: Ras Al KhaimahCo for White Cement ’s board has set a 24 June deadline for shareholders to sell their shares to Indian cement manufacturer Ultratech, in response to its bid to acquire a 31.6% stake in the company, the company said in a disclosure (pdf). Ras Al Khaimah Co for White Cement’s board of directors said it backs Ultratech’s offer and recommended it to shareholders on Monday.
Management will stay following the acquisition: Ultratech plans to maintain RAK White Cement’s current management structure, retaining “the skills and expertise of [the company’s] current senior management team on their existing terms.”
Refresher: Ultratech offered to purchase around 158 mn shares for AED 181.7 mn through its UAE-based subsidiary, UltraTech Cement Middle East Investments. UltraTech intends to expand the cement manufacturer’s operations locally and globally, and to introduce new products to Rak Cement’s production portfolio, such as wall care putty. The firm had acquired a 29.39% stake in Rak White Cement for USD 101 mn in 2022.
AND- Taqa pulls the plug on Naturgy takeover: Abu Dhabi’s Taqa will not proceed with the acquisition of Spanish gas producer and renewables player Naturgy after halting discussions with two of the utility’s largest shareholders, CVC Capital Partners and Global Infrastructure Partners (GIP), the energy firm said in a statement (pdf).
Taqa also confirmed that it has terminated talks with Criteria Caixa over a potential cooperation agreement to hold a stake in Naturgy.
ICYMI- Criteria Caixa said on Monday that talks with Taqa regarding a joint takeover have fallen through. The two companies were reportedly looking to “cooperate” on a potential acquisition. Criteria Caixa currently owns a 26.7% stake in the company.
BACKGROUND- Taqa disclosed in April that it was in discussions with the three shareholders to potentially acquire their stakes in the Spanish company. The acquisition was expected to meet resistance amid a rising wave of protectionism in the EU, which would have prompted the Spanish government to negotiate maintaining a stake.
