Abu Dhabi Said to Explore Asset Sales After Slump in Oil Price - Bloomberg Business

Abu Dhabi Said to Explore Asset Sales After Slump in Oil Price - Bloomberg Business: "Abu Dhabi is reviewing its largest state-owned companies as the slump in crude oil pressures the emirate’s finances, four people with knowledge of the matter said.
Abu Dhabi National Energy Co. and International Petroleum Investment Co. are in talks with banks on options including strategic partnerships, share sales and asset disposals, the people said, asking not to be identified because talks are private. Mubadala Development Co., an investment fund, is considering further divestments after selling most of the assets in its joint venture with General Electric Co., according to the people.
Bank of America Corp., JPMorgan Chase & Co. and Credit Suisse Group AG are among banks pitching for mandates, while some government-related entities have already appointed advisers, according to the people. Mubadala, Abu Dhabi National Energy Co., known as Taqa, and IPIC own about $150 billion of assets, according to Bloomberg calculations. The banks and companies either declined to comment or weren’t available to comment.
Abu Dhabi, capital of the United Arab Emirates and source of about 6 percent of the world’s proven oil reserves, is seeking to counter the erosion of its finances after crude prices halved in the past year. The U.A.E. is OPEC’s third-biggest oil producer and may post a fiscal budget deficit this year for the first time since 2009, according to the International Monetary Fund. Economic growth will probably slow to 3 percent this year from an estimate of 3.6 percent in January, the IMF said this month."



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