Meed | Taqa to bid for GS Inima

Taqa to bid for GS Inima

18 December 2024

Abu Dhabi National Energy Company (Taqa) is expected to submit an offer to acquire Madrid-headquartered water desalination developer and investor GS Inima from its parent firm, South Korea-based GS Engineering & Construction, by February.

Taqa and a pension fund from Canada are understood to have been shortlisted to bid for the sale of GS Inima.

The sales contract is expected to be finalised as early as the beginning of next year, South Korea-based media reported in October.

The sale of GS Inima is estimated to be valued at about KRW1.3tn ($836m) to KRW2tn ($1.4bn). MEED understands that GS Inima's revenue reached KRW493bn in 2023 and its net profit was KRW52.2bn.

"If GS Inima's management rights are sold, it is expected to secure over 1.5tn won in cash, which will significantly improve financial soundness," noted Bae Se-ho, a researcher at iM Securities.

GS Engineering & Construction acquired Inima from Spanish builder Obrascon Huarte Lain for an estimated $312.4m in 2011.

It saw off competition 13 years ago from three contenders in the final bid round, which included fellow South Korean contracting firm Posco Engineering & Construction.

In the Middle East and North Africa region, GS Inima won the contract to develop and operate the Shuweihat 4 independent water project in Abu Dhabi in 2023. The $44m seawater reverse osmosis desalination project reached financial close in December last year.

It is also leading the team developing two independent water projects in Oman, while actively pursuing new contracts in Saudi Arabia and Bahrain as well as in North Africa.

A successful bid by Taqa will further expand its portfolio, which comprises Abu Dhabi power transmission and water distribution, water treatment and energy services companies, in addition to power generation assets.

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Jennifer Aguinaldo