ACWA Power increases its ownership in Shuqaiq

Updated 02 April 2014
0

ACWA Power increases its ownership in Shuqaiq

ACWA Power announced that their fully owned subsidiary namely Saudi Arabian Water and Electricity Company (SAWEC) acquired a 6 percent indirect shareholding in Shuqaiq Water and Electricity Company (SqWEC) from Mitsubishi Corporation of Japan (MC).
SqWEC owns an 850 MW power generation and 212,000 cubic meters per day of water desalination capacity IWPP Plant in Shuqaiq on the western shores of Saudi Arabia 130 km north of Jazan. The project started commercial operations in May 2010.
Prior to this acquisition, SqWEC was owned by a group of government and private sector investors.
The government ownership was in two parts; 32 percent by Public Investment Fund (PIF) and 8 percent by Saudi Electricity Company (SEC).
The private sector ownership totals 60 percent of the project and was in three parts; ACWA Power (through SAWEC) owning 34 percent, Gulf Investment Corporation (GIC) owning 20 percent and MC owning 6 percent.
The three private sector investors had invested in SqWEC through their holding company Shuqaiq International Water and Electricity Company (SIWEC).
The 6 percent indirect stake of MC in SqWEC was acquired by ACWA Power (through SAWEC) by purchasing all of MC’s shares in SIWEC.
ACWA Power through SAWEC had signed a Share Purchase Agreement for this purpose with MC on July 29, 2013.
Upon completion of the transaction ACWA Power’s indirect stake in SqWEC has increased from 34 percent to 40 percent.
Paddy Padmanathan, CEO of ACWA Power, said: “Acquiring these shares was a part of ACWA Power’s wider strategy to deploy its capital in earnings accretive and value creating transactions. This transaction represented such an opportunity to ACWA Power and furthermore also gave an opportunity to increase its stake in a project which was completed before time and below budget and where ACWA Power is the lead developer. ”
ACWA Power is a developer, investor, co-owner and operator of a portfolio of plants with a capacity to generate 15,979 MW of power and produce 2.4 million cubic meters/day of desalinated water.
The portfolio has an investment value in excess of $23 billion and provides employment to more than 2,400 people in 8 countries.


‘Saudi Inc’ author says no shows won’t dent KSA investment appeal

Updated 23 October 2018
0

‘Saudi Inc’ author says no shows won’t dent KSA investment appeal

  • Ellen Wald said there was an element of symbolism in the decision by some executives not to attend the Future Investment Initiative
  • Wald also said that the absence of many big name investors from the US and Europe might hand an advantage to other potential business partners

RIYADH: An American expert on US-Saudi business affairs believes that the withdrawal of some senior business leaders from the investment conference that opens in Riyadh today does not reflect the Kingdom’s commercial attractions.
Ellen Wald, president of the Transversal Consulting think-tank and author of the recent book “Saudi Inc,” told Arab News that there was an element of symbolism in the decision by some executives not to attend the Future Investment Initiative in the Saudi capital, and that many business people were still looking to do business there.
“I think the big pull out of CEOs is not really reflective of the corporate interest in the Kingdom because we see them sending their next level of executives along. So to some degree it (the CEO pullout) is symbolic. I think what they experience here this week will have an effect,” she said.
Wald also said that the absence of many big name investors from the US and Europe might hand an advantage to potential business partners in other parts of the world.
“In terms of attracting foreign investment, Saudi Arabia could have strategic leverage with Russia and China, and a unique opportunity to work on cutting edge technolgies,” she said.
Wald was speaking at an event organized by the King Abdullah Petroleum Studies and Research Center to discuss her book. She said that Saudi Arabia had a greater need for technology and know-how than for cash investment.
“With regard to foreign investment, it is not about extracting money, but about extracting expertise. The Saudi model has been to hire outside industrial talent, for example the Public Investment Fund and its cinema partner AMC. They are buying expertise in the same way that the Saudis bought in expertise with Aramco, all those years ago. Eventually they (PIF) will buy the cinemas out or bring in somebody else to run them,” she added.