
RIYADH: Saudi utility firm ACWA Power has finalized deals to sell 35 percent of its stake in two subsidiaries to China Southern Power Grid International for SR595.9 million ($158.87 million).
In a statement to Tadawul, the Public Investment Fund-backed company announced the closing of the sale and purchase agreement for its shareholding in ACWA Power Bash Wind Project Holding Co. and ACWA Power Uzbekistan Wind Project Holding Co.
The SPAs were signed between ACWA Power Green Energy Holding and China Southern Power Grid International, with the Saudi firm now holding a 65 percent stake in these two projects following the successful completion of the conditions precedent.
ACWA Power has been actively pursuing renewable energy development goals in various countries, aiming to expand its footprint and contribute to sustainable energy solutions globally.
The sale is part of the company’s capital recycling strategy, complementing its business model focused on partnering with robust and reputable equity partners.
ACWA Power is developing the Bash 500 megawatts and Dzhankeldy 500 MW wind farms in Uzbekistan under a 25-year power purchase agreement with JSC National Electrical Grid of Uzbekistan.
Located in the Bukhara region, these projects aim to collectively generate 1 gigawatts of renewable energy under a Build, Own, Operate, Transfer model, with an estimated total investment cost of SR5.1 billion during construction.
The latest SPA signed in he signing ceremony to complete the deal was held in Tashkent, UzbekistanTashkent, Uzbekistan, marks the first significant collaboration between ACWA Power and China Southern Power Grid in Central Asia, the Saudi Press Agency reported.
This deal follows ACWA Power’s memorandums of understanding with nine Chinese entities at the December 2022 Riyadh Arab-China Summit, focusing on developing global clean energy projects in Saudi Arabia and Belt and Road countries.