Sanabil and Saudi PPA acquire ACWA Power stake
Investors take 19.4% share in Saudi power giant
Saudi power firm ACWA Power has announced that is has closed a private placement transaction of a new issue of around 89.5 million primary equity shares to Sanabil Direct Investment Company. Sanabil is owned by Saudi Arabian Investment Company, which is subsequently owned by the Public Investment Fund and Saudi Public Pension Agency (PPA). Sanabil now holds a 13.72% share, with PPA taking a 5.71% stake.
Each firm will be entitled to a seat on the company’s Board of Directors.
“PPA seeks attractive investments in successful National companies who demonstrate a long-term ability to generate sustainable returns. Based on the due diligence performed by PPA, ACWA Power has become successful, in record time, through management of its portfolio of assets which contains some of the Kingdom’s largest water desalination and power generation plants, in addition to its success in international markets in a short time period. ACWA Power has demonstrated its long-term vision by investing in renewable energy facilities such as its projects in Morocco, Bulgaria and South Africa,” said H.E. Mohammed bin Abdullah Al-Kharashi, PPA governor.
ACWA Power chairman, Mohammad A. Abunayyan, said of the deal: “We are pleased that Sanabil and PPA have joined ACWA Power as new investors. This will have a significant positive impact on the strength of the company’s financial position and on its business by accelerating the execution of its strategic and expansion plans to become the prime international developer of power generation and water desalination plants both in Saudi Arabia and globally.”
ACWA Power’s current portfolio of power and water projects comprises 19 assets, with 13GW of power generation and 2.37 million cubic metres per day of desalinated water output capacity.