Riyadh – Mubasher: ACWA Power has signed a share purchase agreement (SPA) with Samsung C&T to acquire a 4.99% of its shares in Hajr Electricity Production Company (HEPC).
The agreement includes an option to purchase the remaining stake of Samsung C&T in HPEC, according to a press release on Monday.
HEPC is responsible for the Qurayyah Independent Power Plant (IPP) in Saudi Arabia, and Saudi Electricity Company (SEC) currently owns the majority of its shares (50%).
A consortium of ACWA Power (22.49%) MENA Infrastructure Fund (15%), and Samsung C&T (12.51), owns the remaining 50% of the company’s capital.
The deal increased ACWA Power’s share from 17.5% to 22.49%.
Commenting on the deal Paddy Padmanathan, CEO of ACWA Power, said: “The increase of equity participation in the Qurayyah IPP project is an indication of ACWA Power’s confidence in the Kingdom’s economy and social prosperity set on a growth trajectory by the steady implementation of the various programs within the framework of the ambitious Saudi Vision 2030.
The total cost of the project, which was signed in 2011 and units began power generation in 2013, was $2.7 billion, with approximately 75% of financing through a long-term project financed debt and the remaining in the form of equity, according to ACWA Power.
