ACWA Power Sells 30% Stake In RAWEC To Hassana Investment Company
Saudi Arabia's energy and utilities sector witnessed a significant development as ACWA Power, renowned for its leadership in the transition to green energy and status as the's largest private water desalination entity, announced a major deal on Monday. Hassana Investment Company (Hassana) has formalized its acquisition of a 30% stake in Rabigh Arabian Water & Electricity Company (RAWEC IWSPP) from ACWA Power. Valued at SAR 844 million ($225 million), this share purchase agreement (SPA) highlights the commencement of a durable collaboration between the two entities.
The agreement was executed by Mr. Abdulhameed AlMuhaidib, ACWA Power's CFO, and Mr. Ahmed Al-Qahtani, Chief Investment Officer for Regional Markets at Hassana. The ceremonial signing was graced by the presence of Saad bin Abdulmohsen Al-Fadly, CEO of Hassana, and Marco Arcelli, CEO of ACWA Power.
RAWEC IWSPP, as an Independent Water, Steam, and Power Producer, plays a vital role in supplying utilities to Petro Rabigh through a long-term offtake agreement. Prior to this transaction, ACWA Power was the predominant stakeholder in RAWEC, holding a 99% share. This strategic divestment aligns with ACWA Power's capital management strategy, aiming to introduce significant partners into the project-level operations of its extensive portfolio.
Marco Arcelli expressed enthusiasm about the partnership with Hassana Investment Company, affirming it as a testament to ACWA Power's commitment to enhancing stakeholder value through strategic partnerships and capital strategy execution. He anticipates a fruitful collaboration that will bolster sustainable growth and innovation within the utility sector.
On the other hand, Saad bin Abdulmohsen Al-Fadly underscored the alignment of this transaction with Hassana's investment approach, which focuses on securing high-performing infrastructure assets characterized by stable and appealing cash flow profiles, supported by long-term offtake agreements. Al-Fadly looks forward to a mutually beneficial and enduring partnership with ACWA Power, reflecting their shared objectives for long-term investment success.
Sign in with Google