ABB has agreed to sell its stakes in two independent power projects to Taqa, the Abu Dhabi National Energy Company, for $490m.
The assets, in Morocco and India, are part of ABB's Equity Ventures unit, which is among the company's non-core activities. The sale to Taqa is subject to lenders’ and other customary approvals and is expected to be completed in the second quarter.
‘The move is part of our ongoing divestment of non-core businesses, as we continue to focus on our power and automation technologies,’ said Michel Demaré, ABB’s chief financial officer. ‘We obtained a fair price for the stakes, fully reflecting the quality of the assets.’
The transaction includes the 50 per cent holding in the Jorf Lasfar Energy Project, a 1,356MW (megawatt) coal-fired power plant about 80 miles southwest of Casablanca, Morocco and the 50 percent stake in the Neyveli Project a 250MW lignite-fuelled power station in the Indian state of Tamil Nadu.