ACWA Power sells 30% stake in RAWEC to Hassana for SAR 844M

ACWA Power Co. signed, on June 3, a share purchase agreement (SPA) to sell 30% of its stake in Rabigh Arabian Water & Electricity Co. (RAWEC) to Hassana Investment Co., for SAR 844 million, according to a statement to Tadawul.

The deal included Arabian Company for Water and Power Projects, Oasis Power One Conventional Energy and Water Co. and GOSI Investment Ventures Limited.

RAWEC is an independent water, steam and power production plant (IWSPP), which supplies the key utilities to Petro Rabigh petrochemical complex. The project has a long-term off-take agreement with Petro Rabigh Co.

ACWA Power currently owns 99% RAWEC, and the asset book value amounts to SAR 731 million. The sale is part of ACWA Power’s capital recycling strategy.

ACWA Power expects to generate gains from this divestment, which will be recorded on the closing date of transaction.

Additionally, RAWEC’s contribution to the group’s net income will be proportionately reduced in line with the divestment.

The proceeds will be used for general corporate purposes, ACWA Power said.