Viridian Group, owner of Northern Ireland Electricity (NIE), Energia, Huntstown Power Station and Powerteam, has received a £1.62bn cash bid from the Bahraini-based private equity firm Arcapita.

Viridian Group grew out NIE following its privatisation in 1993. The company employs around 1,000 people, predominately in the Republic of Ireland and Northern Ireland, and has an annual operating profit of £132.4m.

Arcapita has already bought South Staffordshire Water, which has a customer base of 1.2m people in the Midlands, and has a joint venture with npower to operate 19 wind farms across Britain.

If the bid is successful it will be the latest example of a UAE-based company making a major international acquisition. Last year P&O was bought by Dubai Ports World in a £3.3bn deal, and Dubai International Capital recently acquired the Tussauds Group, operator of the famous wax works museum and a number of theme parks, for £800m.