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Middle East Report 2009| pfi| 7

The emergence of Aabar says more about IPIC and its future role

cals and investments. Such moves are indicators of IPIC's increasing stature within Abu Dhabi and its growing role in shaping Abu Dhabi's global economic footprint. The shift from being a pure downstream hydrocarbon

investor to a much wider player began to take shape in early 2008. The first concrete sign of this change came on April 9, when IPIC announced that it had acquired a 2% stake in utility Energias de Portugal (EDP). In a state- ment announcing the deal, the company said: "The acquisition forms part of IPIC's current diversification plans and marks the entry of IPIC into the utility sector." The deal represented a small but significant shift into a new area; but one that was still close to IPIC's energy roots. A much more seismic shift came in January 2009, when IPIC announced it had acquired a 70% stake in Ger- man industrial services group MAN Ferrostaal for €490m (US$670m). The cash deal for the arm of MAN Group, which also included a clause by which IPIC could purchase the remaining 30% by the end of 2010, stretched IPIC's reach into the industrial sector for the first time and gave it new markets and geographies to explore. Such moves have already begun to take shape, with MAN Ferrostaal

The shift from being a pure

downstream hydrocarbon investor to a much wider player began to take shape in early 2008.

being lined up by its new parent for a number of differ- ent roles. These includes the construction of a US$1.34bn ammonia and carbamide complex in Uzbekistan by a joint venture of IPIC and Uzkimyosanoat, the Uzbek state chemical firm.

But as IPIC was formalising its MAN Ferrostaal acqui- sition, it was also on the verge of announcing another; one that would give it direct access to North America for the first time.

On February 24 2009, IPIC confirmed that had reached agreement with Nova Chemicals for a takeover ulti- mately worth US$2.3bn. The decision would see the Abu Dhabi fund purchase all Nova's shares at US$6 per share – valuing the company at US$499m – as well as absorb- ing Nova's debts. IPIC would also offer a US$250m cred- it backstop facility to provide the Canadian company with liquidity to continue functioning.

The deal worked well for both sides. For Nova, the bid from IPIC amounted to a rescue from the punishing economic downturn. The day before the announcement, Nova's share price on the New York Stock Exchange stood at US$1.66, having fallen 96% in the previous 12



Annual Project Finance Forum 26th

“Shaping the Recovery of the Project Finance Market” ~ 27th

May 2009, Grosvenor House, Dubai, UAE SPEAKER PANEL

Greg Fewer, Mubadala Development Company Assistant Director & Advisor, Project & Corporate Finance Unit William Rathvon, HSBC Global Head of Project Finance Rajesh Sharma, Export Development Corporation Vice President & Head of Structured Finance Christopher Cantelmi, Marubeni Europower VP & Head of Project Finance

Chahid Jarmouni, BNP Paribas VP, Energy & Commodities Finance - Gulf & Middle-East Ranald Spiers, International Power Regional Director, Middle East Murtaza Chevel, Palm Utilities CFO

Karel Breda, Suez Energy Vice President, Corporate & Project Finance

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Annual ME Project Finance event you’ll be able to: * Monitor the deals your competitors are putting together

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For more details contact: Maria Luminita Birza, Marketing Manager Tel: + 971 4 609 1575, Fax: + 971 4 609 1589 Email: maria.luminita@fl

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