Muscat: Oman government plans to disinvest 49 per cent stake in state-owned Muscat Electricity Distribution Company (MEDC) by way of a combination of private placement and initial public offering.
Nama Holding, which is the holding company of power distribution firm MEDC, has appointed a transaction advisor to manage the disinvestment, which is in line with the privatisation policy of the government, according to a press release from Nama Holding.
“The transaction advisor will carry out the studies and prepare the required documents for the process in addition to managing both the private and public placements of the transaction,” said the press release. Subsequently, the advisor will undertake the necessary steps to list the company shares in Muscat Securities Market (MSM).
Nama Holding will work with all concerned stakeholders to ensure the effective implementation of government’s directives according to the set plan and in accordance with the Law of The Regulation and privatisation of the electricity and related water sector.
The privatisation of MEDC reflects the government’s mission in enhancing the quality and efficiency of services offered to the public.
The objectives of MEDC’s privatisation are to promote individual and institutional participation in this key institution that plays an active role in developing the backbone infrastructure for further economic development. The government’s privatisation of MEDC will also enhance and develop the capital market in Oman, in addition to increasing local investments of domestic investors.
Muscat Electricity Distribution Co. is a closed joint stock company established as a result of the restructuring of the Electricity and Related Water Sector under the law promulgated by Royal Decree No.78/2004, amended by Royal Decree No. 59/2009 and Royal Decree No. 47/2013, The company is licensed by the Authority for Electricity Regulation, to distribute and supply electricity in the Governorate of Muscat.
Nama Group companies include Nama Holding, Majan Electricity Company, Mazoon Electricity Company, Muscat Electricity Distribution Company, Oman Electricity Transmission Company, Oman Power and Water Procurement Company, Rural Areas Electricity Company, Wadi Al Jizzi Power Company, Al Ghubrah Power & Desalination Company, and Dhofar Power Company.