Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
L’imad Holding is set to acquire the remaining shares in Abu Dhabi National Energy Company (TAQA) through a Mandatory Acquisition process launched in accordance with UAE regulations.
In a stock market disclosure posted by TAQA, it was stated that Abu Dhabi Power Corporation, a wholly owned subsidiary of Abu Dhabi Developmental Holding Company (ADQ), which is in turn wholly owned by L’imad Holding Company, has given notice to all non-L’imad Holding shareholders of its intention to “compulsorily acquire all remaining shares in TAQA.”
TAQA said it had been informed that Abu Dhabi Power Corporation, its majority shareholder and an indirect wholly owned subsidiary of L’imad Holding Company, had issued a mandatory acquisition, or Squeeze-Out, notice to TAQA shareholders.
“TAQA is publishing the attached notice on behalf of AD Power. The notice has been issued in accordance with the applicable laws and regulations governing mandatory acquisition procedures,” the disclosure said.
The move follows Abu Dhabi Power Corporation’s recent acquisition of an additional 8.09% stake in TAQA, including a 7.29% stake from 2PointZero Group, raising its holding in the company to 98.12%.
Abu Dhabi Power Corporation has set the Squeeze-Out Price at Dh2.70 for each TAQA share. The notice said the price is the highest of the market price on the date of the notice, the closing price on the preceding day, the average market price over the past three months preceding the date of the notice, and the highest price paid by the Acquirer over the past 12 months.
The notice said completion of the Mandatory Acquisition is conditional upon the amendment of TAQA’s Articles of Association by special resolution to include a squeeze-out provision. A General Assembly will be convened within 45 days of the notice.
Subject to satisfaction of the Conditions Precedent and the expiry of the 60-day challenge period, all remaining TAQA shares, meaning the shares not owned by the Acquirer at the date of the notice, will be re-registered in the name of the Acquirer.
The Mandatory Acquisition can only be completed after the expiry of 60 days from the date of the notice. Settlement is expected on August 13, 2026, seven days after the expiry of the challenge period. No voluntary suspension of trading is expected, and trading will continue in the ordinary course.
Settlement will be made through the ADX clearing and settlement framework. The Acquirer will pay the Squeeze-Out Price to each Relevant Shareholder through the payment method registered with the ADX Central Securities Depository. If a Relevant Shareholder does not have a valid payment method registered with ADX CSD, the consideration will be held in escrow on behalf of that shareholder until a valid payment method is registered.
The notice said the Mandatory Acquisition applies to all TAQA shares, regardless of whether they are encumbered, pledged or sold or transferred to a third party during the 60-day period. It said each Relevant Shareholder is responsible for coordinating with any third party.
Relevant Shareholders may apply to the competent court within 60 days from receiving the notice to seek suspension. The process will not be suspended except by court order. In the absence of a court order, settlement will occur within seven days following expiry of the 60-day period.
The move, if completed, would result in Abu Dhabi Power Corporation acquiring all remaining TAQA shares not already owned by it, effectively consolidating full ownership of the listed company. While the notice does not specifically refer to delisting, such a compulsory acquisition would remove the remaining minority shareholding in the company.
“Once the mandatory acquisition is completed and all outstanding shares are consolidated under the parent entity, the rationale for maintaining a public listing becomes significantly reduced, making a future delisting a logical outcome,” Milan Azar, Market Analyst, XTB MENA, said.
“While the transaction underscores the strategic importance of TAQA within Abu Dhabi’s broader infrastructure and energy ambitions, it also effectively brings public market participation by minority investors closer to an end,” Azar added.
Azar said the move reflects a growing preference among state-backed entities to simplify ownership structures and enhance operational flexibility through full control of strategic assets.
