ACWA Power acquires 32% stake in Shuaibah IWPP for SAR 843M

In a statement to Tadawul, the company said the buyer is Alwaha Projects Co., a Saudi entity wholly owned by ACWA Power, noting that the transaction will be self-financed.

The transaction is expected to provide an additional contribution to ACWA Power’s earnings and cash flow, the company added, anticipating an increase in recurring net income and free cash flows attributable to shareholders.

It noted the presence of related parties, as the seller, Badeel, is also ACWA Power’s largest shareholder.

ACWA Power added that it is currently an indirect shareholder in Shuaibah IWPP and that, upon completion of the transaction, its ownership stake will increase from 30% to 62%.

The company explained that the project carries limited operational risk, with revenues from the sale of output received from the offtaker until the expiry of the Water and Power Purchase Agreement (PWPA) in 2030.

The company noted that the asset is Saudi Arabia’s first independent water and power plant (IWPP), which began operations in 2010, with a power generation capacity of 900 megawatts and a water desalination capacity of 880,000 cubic meters per day.

It added that completion of the transaction is subject to the fulfillment of the conditions precedent set out in the SPA, including obtaining all required regulatory approvals.