Mubadala GE Capital, a joint venture of the Abu Dhabi investment fund and the US’ GE, will buy a stake in Oman’s United Power Company.

The buyer will purchase 16.41 per cent of United Power’s total share capital from three local shareholders, National Trading Company, WJ Towell & Company and Zubair Corporation.

Oman’s regulator, the Authority of Electricity Regulation (AER) has agreed to the transaction, which is expected to be concluded by 31 December 2010.

“As a result of the Transaction, the existing business of the company shall not be affected,” said United Power in a statement.

United Power Company was formed and registered as a joint stock company in 1995. The public currently owns 40 per cent of the company’s shares while 60 per cent is held in founder shares.

In 2009, France’s GDF Suez sold a 32.81 per cent equity stake to UAE-based Mena Infrastructure Investments. GDF Suez continues to work on the project under an operations and maintenance agreement.