SGCC to acquire stake in Oman’s transmission company
State Grid Corp. of China (SGCC) has agreed to acquire a 49% stake in Oman’s state-owned power transmission company in the first major privatization by the Middle East’s largest non-OPEC oil producer.
The Chinese state-owned company announced the deal on its website recently, without providing any financial details. The statement confirmed an earlier Bloomberg News report. State Grid will buy the stake in a transaction that values Oman Electricity Transmission Co. at about $2 billion.
The privatization attracted interest from large international investors and is the biggest in size in the country’s electricity sector. The nation’s Nama Holding retain a controlling stake in Oman Electricity after the transaction.
Oman Electricity owns and operates the nation’s main transmission network. The company, which is a subsidiary of Nama Holding, posted profits of $60 million – significantly more than the same period last year.
Source: T&D World