ACWA Power sells stake in IWSPP for $225mn
The sale was part of the firm’s capital recycling strategy as it had 99% shareholding in the project
Acwa Power has said it has reached an agreement to sell 30% of its stake in the Rabigh Arabian Water & Electricity Company (Rawec) IWSPP to Hassana Investment Company for the sum of US $844mn. The latter is the investment manager of Saudi Arabia’s social security and pension fund GOSI.
According to its filing to the Saudi bourse Tadawul, the deal was inked with Arabian Company for Water and Power Projects (Rawec), Oasis Power One Conventional Energy and Water Company and Gosi Investment Ventures Limited.
The Rabigh IWSPP is owned and operated by Rawec, a joint venture (JV) between Acwa Power, Marubeni Corp, JGC Corporation, and Petro Rabigh. The project was constructed under an EPC contract by Mitsubishi Heavy Industries and consists of a conventional thermal power with five 118MW steam turbines, nine 470 t/hr steam generators, three wet limestone Flue Gas Desulphurisation (FGD) units, and sixteen 504 m3/hr Reverse Osmosis (RO) trains.
Rawec is an independent water, steam and power producer, supplying essential utilities on a captive basis to Petro Rabigh Company.
Acwa Power said the sale was part of its capital recycling strategy. The Saudi utility giant till now had 99% shareholding in the project. It said it expects to have a gain on this divestment, which will be calculated on the closing date of the transaction.
Additionally, Rawec’s contribution to the group net income will proportionately reduce in line with the divestment, it concluded.
