Bloomberg/Christopher Pike
by Kudakwashe MuzoriwaState Grid Corporation of China (SGCC) has acquired a 49 per cent stake in Oman Electricity Transmission Company also known as Nama Holding in the first major privatisation by the Middle East’s largest non-OPEC oil producer.
The deal is one of five privatisations that Nama Holding is planning as Oman seeks to raise cash from asset sales to bolster its coffers, which have been depleted over the past few years by a slump in oil prices.
Beijing-based SGCC will acquire the stake in a deal that values OETC at about $1 billion and Nama Holding will retain a controlling stake in Oman electricity company after the transaction. The privatisation attracted interest from large international investors and is the largest in size in the country’s electricity sector.
A potential deal will be a landmark for the Gulf Arab monarchy as it embarks on asset sales of government-owned entities to plug one of the largest budget deficits among oil exporters. The deal is also a sign of China’s rising interest in the Middle East amid plans by President Xi Jinping to increase the nation’s political clout and revive ancient trading routes under his
State Grid Corporation of China (SGCC) has acquired a 49 per cent stake in Oman Electricity Transmission Company also known as Nama Holding in the first major privatisation by the Middle East’s largest non-OPEC oil producer.
The deal is one of five privatisations that Nama Holding is planning as Oman seeks to raise cash from asset sales to bolster its coffers, which have been depleted over the past few years by a slump in oil prices.
Beijing-based SGCC will acquire the stake in a deal that values OETC at about $1 billion and Nama Holding will retain a controlling stake in Oman electricity company after the transaction. The privatisation attracted interest from large international investors and is the largest in size in the country’s electricity sector.
A potential deal will be a landmark for the Gulf Arab monarchy as it embarks on asset sales of government-owned entities to plug one of the largest budget deficits among oil exporters. The deal is also a sign of China’s rising interest in the Middle East amid plans by President Xi Jinping to increase the nation’s political clout and revive ancient trading routes under his ‘One Belt, One Road’ initiative.
Oman Electricity owns and operates the nation’s main transmission network. The company, which is a subsidiary of Nama Holding, posted a profit of OMR 23 million ($60 million) in H1 2019 compared with OMR 17 million for the same period last year.
Oman has one of the biggest budget shortfalls of all the sovereigns tracked by Fitch Ratings. The Sultanate finances have been hurt by lower oil prices, pushing the government to consider alternative sources of funding. It has been raising money from international debt markets to plug the deficit.
Oman Electricity owns and operates the nation’s main transmission network. The company, which is a subsidiary of Nama Holding, posted a profit of OMR 23 million ($60 million) in H1 2019 compared with OMR 17 million for the same period last year.
Oman has one of the biggest budget shortfalls of all the sovereigns tracked by Fitch Ratings. The Sultanate finances have been hurt by lower oil prices, pushing the government to consider alternative sources of funding. It has been raising money from international debt markets to plug the deficit.
MOST READ
BUSINESS
Fed rate cuts add pressure on Saudi banksBUSINESS
ING Groep plans to sell its Turkish unitBUSINESS
Bahrain considers stake sell in oil assetsBUSINESS
SABB seeks to boost corporate lendingBUSINESS
Dubai’s W Motors seeks funds to go electricBUSINESS
HSBC considering exiting from TurkeyBUSINESS
Zimbabwe turns to UAE to sell a stake in...BUSINESS
ADIA plans to sell a $2 billion stake in...BUSINESS
Amanat considers stake in VPS HealthcareBUSINESS
ECI, HSBC partner to support UAE businessesBUSINESS
National Bank of Oman to exit from EgyptBUSINESS
Salt Bae backers seek a partner and a $1...BUSINESS
Oman plans to launch new regional airline
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
