Prime Highlights-
- ACWA Power acquired a 32% stake in Shuaibah Water and Electricity Co. from Badeel for SR843.3 million, raising its ownership to 62%.
- The deal strengthens ACWA Power’s position in the Shuaibah Independent Water and Power Project, a key Saudi power and water facility.
Key Facts-
- The transaction was completed after approvals and disclosed on the Saudi Exchange. It was executed through subsidiary Alwaha Projects Co..
- The plant produces 900 MW of powerand 880,000 m³ of desalinated water daily. It operates under a contract running until 2030.
Background-
Saudi utility developer ACWA Power has completed the acquisition of a 32 percent stake in Shuaibah Water and Electricity Co. from Badeel for SR843.3 million ($224.8 million), increasing its overall ownership in the project company to 62 percent.
The deal, which was first announced in December, was finalized after receiving the necessary regulatory approvals along with shareholder and lender consents. The transaction was disclosed in a filing on the Saudi Exchange.
According to the company, the acquisition was carried out through Alwaha Projects Co., a wholly owned subsidiary of ACWA Power, and was financed using the company’s internal funds.
The purchased stake represents the entire holding previously owned by Badeel in Shuaibah Water and Electricity Co., the operator of the Shuaibah Independent Water and Power Project. The project is considered one of Saudi Arabia’s significant integrated water and power facilities.
Prior to the latest transaction, ACWA Power already held an indirect 30 percent interest in the project. Badeel, formally known as Water and Electricity Holding Co., is fully owned by the Public Investment Fund, which is also the largest shareholder of ACWA Power.
Commissioned in 2010, the Shuaibah IWPP has a generation capacity of 900 megawatts and a desalination capacity of around 880,000 cubic meters of water per day. The facility continues to operate under long-term contractual arrangements that provide stable capacity payments until the expiry of the original power and water purchase agreement in 2030.
ACWA Power said the acquisition is expected to strengthen its recurring earnings and enhance free cash flow to equity. The company has been expanding its global utility portfolio and recently reported a rise in annual profit and revenue, reflecting continued growth in its international operations.
