Jordan Dubai Capital (JD Capital), an investment company based in Amman, whose largest shareholders are Dubai International Capital and the Social Security Corporation of Jordan, announced the sale of its controlling stake in the Central Electricity Generating Company (CEGCO), the largest power generator in Jordan to ACWA Power International (ACWA Power), a major Saudi Arabian developer, owner and operator of privately financed bulk water desalination and power generation projects for a total consideration that values 51% of CEGCO at $144 million.
CEGCO is the largest power generator in Jordan with seven power generation sites across the country totalling circa 1700MW of installed capacity from a mixed portfolio by technology and fuel type. CEGCO was privatized in 2007 when 51% of CEGCO was acquired by Energy Arabia (ENARA), which was established in 2006 by Jordan Dubai Energy and Infrastructure, a wholly owned subsidiary of JD Capital, in partnership with Malakoff and Consolidated Contractors Company (CCC) to meet the growing demand for power generation investment and services in the region. The other shareholders in CEGCO are the Government of Jordan which maintained a 40% stake after the privatization and the Social Security Corporation which acquired 9% from the Government.
“After four years, JD Capital has come to the end of its natural hold period for an asset of this type. JD Capital will continue to concentrate on the development of its portfolio as well as look for future growth areas in Jordan in which to invest based on our belief that Jordan remains an attractive destination for regional and international investment,” David Smoot, Chairman of Jordan Dubai Capital said.
“I am very proud of the Company’s success and achievements we remain dedicated to supporting Ismail Tahboub, the CEO, and the members of JD Capital’s senior management, whose skills and capabilities have been instrumental in positioning the Company at the helm of its sector,” he added.
“Under JD Capital’s stewardship CEGGO has transitioned from a state owned company to a successful privately owned commercial enterprise. In securing the highest quality operator to manage the next phase of CEGCO’s development, JD Capital has shown itself to be a regional leader in acquiring managing and successfully exiting highly complex infrastructure assets. It is particularly pleasing to have seen strong foreign investor interest for the asset throughout the sale process; which culminated in the sale of CEGGO to a highly respected Saudi Arabian company. This proves that the Government of Jordan’s strategy for private participation in the power sector has been successful and that the Government continues to be a solid and credit worthy counterparty. We have secured reasonable return on our original investment, which is in line with the low risk nature of infrastructure assets,” Ismail Tahboub, Chief Executive Officer of Jordan Dubai Capital.
“We are excited about this acquisition, which marks our entry into the second country outside our home market of Saudi Arabia, following last year’s successful acquisition of Barka I IWPP in the Sultanate of Oman. This acquisition is another key milestone in our company’s history and is a culmination of a longstanding endeavor to establish a presence in Jordan and contribute to increasing Jordan’s electricity generation capacity to keep pace with its rapidly growing demand, all the while also being mindful of utilizing the scarce fuel resources in the most efficient manner possible,” Mohammad Abunayyan, Chairman of ACWA Power, said.