ADNOC Drilling and Alpha Abu Dhabi Holding acquire majority stake in Gordon Technologies

(MENAFN) ADNOC Drilling and Alpha Dhabi Holding, both listed on the Abu Dhabi Stock Exchange, announced a significant development on Tuesday. Their joint venture, Enersol, has inked an agreement to procure an additional 42.206 percent stake in Gordon Technologies. This transaction, valued at approximately USD270 million, positions Enersol as the majority owner of Gordon Technologies.

According to a statement released by the two companies on the Abu Dhabi Financial Market website, the valuation for this acquisition was determined based on an evaluation consistent with that of the initial purchase process. Enersol had previously acquired a 25 percent stake in Gordon Technologies in January 2024.

The statement, reported by Sky News Arabia, reveals that around 80 percent of the value for the additional 42.206 percent stake will be disbursed upon the completion of the deal. The remaining amount is slated for payment over the next two years, contingent upon meeting specified performance criteria. However, the finalization of the transaction is subject to obtaining approvals from pertinent regulatory authorities and adjusting the purchase price as necessary.

Crucially, Gordon Technologies has no outstanding debts. Therefore, this acquisition is anticipated to generate added value for shareholders of the Enersol joint venture. The benefits include enhanced profitability, multiple valuation, increased cash flow generation, and potential profits. Additionally, Enersol expects a free cash flow return of over 10 percent for the fiscal year 2023.

This acquisition marks a significant milestone for Enersol and underscores its commitment to strategic investments and expansion opportunities in the energy sector. 

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