JD Capital sells stake in Jordanian power company

18 July 2011

About $71m paid for 51 per cent stake in company

Jordan Dubai Capital (JD Capital) has sold its 51 per cent stake in Jordanian power company Kingdom Electricity Company (KEC) to the Social Security Investment Fund of Jordan for about $71m.

KEC owns 100 per cent of the Electricity Distribution Company (Edco) and 55.4 per cent of Irbid District Electricity Company (Ideco).

Edco and Ideco are public shareholding companies that were privatised by the government in 2008.

Edco is Jordan’s primary electricity distribution company covering 55 per cent of the country. The company was established in 1998 and acquired by KEC in 2007.

Ideco is the sole electricity generation, transmission and distribution company operating in the north of the kingdom. The concession area covers 23,000 square kilometres – roughly 25.6 per cent of Jordan’s geographical area – and includes the governorates of Mafraq, Irbid, Jerash, Ajloun, and parts of Balqa.

The Social Security Investment Fund of Jordan and Dubai International Capital are the largest shareholders in JD Capital.

JD Capital’s sale of its KEC stake follows a similar deal in which the company sold its stake in Central Electricity Generating Company (Cegco) to Saudi Arabia’s Acwa Power.

With the disposal of the KEC stake, JD Capital has completed the divestment of all of the company’s major assets in its infrastructure portfolio.

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