Mubadala, GE Capital acquires stake in United Power

Mubadala_GE_Capital_United_Power

Mubadala GE Capital has acquired a 16 per cent stake in an Omani power generation company, United Power.

Mubadala GE Capital is a joint venture between the Abu Dhabi investment fund and General Electric (GE). Mubadala and GE agreed to contribute US$4 billion each to the venture, which aims to provide loans to medium-sized businesses to finance their growth.

United Power did not give full details of the sale of the preferred shares, which amount to 16.41 per cent of its total share capital, reported The National. Mubadala GE Capital acquired its shares by buying preferred shares from three of United Power's shareholders - National Trading Company, WJ Towell and Zubair Corporation.

"As a result of the transaction, the existing business of the company shall not be affected," said United Power. United Power is worth about US$40 million, according to Bloomberg data. The deal follows the purchase last year of a 32.8 per cent stake of the company by MENA Infrastructure Investments.

Mubadala and GE began commercial operations in May last year. In addition to a contribution of US$8 billion of equity to the venture from both sides, Mubadala announced it was aiming to become one of the US industrial giant's largest shareholders.

Mubadala is currently close to being one of GE's top 10 owners. Mubadala GE Capital has begun to do business in the region, arranging loans for companies in the Gulf. Mubadala GE Capital has committed US$2 billion in financing 45 deals in its first full year of operation.

Ron Herman, CEO of Mubadala GE Capital, said: "We see significant future demand of commercial financing opportunities, initially in the UAE, then across the Gulf and Middle East and Africa region."

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