Shuaa Capital, a regional wealth management and investment banking network, has sold its 20% equity interest in Mirfa International Power and Water Company (MIPCO) to the Japanese conglomerate, Sojitz Corporation (Sojitz).

As per a Shuaa Capital statement on Thursday, MIPCO was formed in 2014 in Abu Dhabi as the tenth project in the private power and water sector initiated under the Department of Energy's privatization process.

The company built and operated a power production and seawater desalination facility in Abu Dhabi's Al Dhafra district, with a net power capacity of 1600MW and a net water capacity of 52.5 million gallons per day (MIGD), under the Power and Water Purchase Agreement (PWPA).

Following an initial investment in MIPCO in 2015 to finance the project's growth process, this divestment is consistent with the Group's expected exit plan. MIPCO's shareholders have included the Abu Dhabi National Energy Group (TAQA) and Engie SA, the French low-carbon energy and services company, which will all remain shareholders (with 60% and 20% stakes).

Sojitz is a global trade and investment listed company on the Tokyo Stock Exchange, with funds of about $21 billion spread across a variety of industries. It has over 40 power plants in more than 14 countries worldwide, making it a perfect partner for MIPCO in the future.

Fawad Tariq Khan, MD, Head of Investment Banking at Shuaa Capital, remarked mostly on the sale of its stake, adding, "With all its experience in foreign influence, Sojitz portrays a perfect partner for MIPCO heading forward, offering operational skills as a strategic investor." As a result, we are pleased to be able to dispose of our stake to Sojitz, following our expected exit horizon, after having funded the construction of the MIPCO project, which will provide power and water protection throughout the UAE.”