Al Batinah Power, Al Suwadi Power assess potential merger

11/05/2026 04:57 AST

Al Batinah Power Company and Al Suwadi Power Company, both listed on the Muscat Stock Exchange, announced on Sunday that they have commenced a preliminary assessment of a potential merger between the two companies.

In separate disclosures filed to the Muscat Stock Exchange, both companies said the proposed merger remains at an early stage and is subject to the completion of relevant assessments, as well as approvals from regulatory authorities, lenders and shareholders of both firms.

The companies said the potential synergies and operational efficiencies arising from the proposed merger had already been considered as part of the economics of their new 15-year Power Purchase Agreements (PPAs) with Nama Power and Water Procurement Company (Nama PWP)

Al Suwadi Power and Al Batinah Power operate the 750MW Barka III Independent Power Plant (IPP) and the 750MW Sohar II IPP, respectively.

Both companies signed new 15-year PPAs with Nama PWP on April 7, 2026. The agreements, which will commence on April 1, 2028, immediately following the expiry of the current PPAs of the firms, will remain in effect until March 31, 2043.

Under the terms of the new PPAs, the contracted capacity of each power plant will be 746.53MW. The agreements ensure the continued offtake of power under mutually agreed commercial terms, strengthen the strategic partnership between the companies and Nama PWP, provide long-term revenue visibility, support operational sustainability and align with the firms' long-term strategy in Oman.

In connection with the potential merger, Al Suwadi Power and Al Batinah Power - which have similar assets, business operations and founders - also disclosed that they are evaluating potential refinancing options related to their existing financing arrangements.

According to the disclosures, the refinancing assessment will also consider funding requirements for capital expenditure planned during the period of the new PPAs.

Both companies emphasised that the refinancing exercise remains at a preliminary stage and there is no assurance that any refinancing transaction will be undertaken or successfully completed. Any refinancing plan, if pursued, will require approvals from the relevant regulatory authorities, existing lenders and the boards of directors of the respective companies.

The companies added that they would keep the market and shareholders informed of any material developments in line with regulatory requirements.

Muscat Daily