Saudi Arabia’s PIF takes 15.2 percent direct stake in ACWA Power

Saudi Acwa Power-generating windmills are pictured in Jbel Sendouq, on the outskirts of Tangier, Morocco, June 29, 2018. (REUTERS/Youssef Boudlal)
Updated 04 July 2018
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Saudi Arabia’s PIF takes 15.2 percent direct stake in ACWA Power

  • The investment will be in the form of a capital increase and proceeds will be used to support ACWA’s growth strategy and investment plan
  • ACWA is poised to be a main beneficiary of one pillar of that reform program, which is a plan to develop Saudi Arabia’s power industry

DUBAI: Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has taken a 15.2 percent direct stake in Riyadh-based ACWA Power, a developer and operator of power and water plants, the two announced in a joint statement on Wednesday.
The PIF already owns a 9.8 percent stake in ACWA through a subsidiary, Sanabil Direct Investments Company, bringing its total shareholding in the company to 25 percent, the statement said.
The investment will be in the form of a capital increase and proceeds will be used to “support ACWA’s growth strategy and investment plan,” it said.
Plans for the stake sale have been in the works since 2016, when the PIF hired HSBC to advise it on the purchase.
ACWA has also been planning to sell a 30 percent stake in an initial public offering in Riyadh by the end of the year and has hired JP Morgan, Citigroup, Natixis and Riyad Capital to advise on that process, sources have told Reuters.
Saudi Arabia aims to expand the PIF into the world’s largest sovereign wealth fund, while also deploying its investments to boost strategic companies inside the kingdom in a bid to grow and diversify the economy.
ACWA is poised to be a main beneficiary of one pillar of that reform program, which is a plan to develop Saudi Arabia’s power industry, particularly renewable energy.
In February the company won a contract to develop a 300 megawatt (MW) solar project in Sakaka worth $300 million, the kingdom’s first such award as it prepares generate 9.5 gigawatts of electricity from renewable energy annually by 2023.
“(The PIF’s) endorsement underlines the central role we play in the Saudi economy and our successful international expansion all geared toward achieving the objectives of Vision 2030,” said ACWA chairman Mohammad Abunayyan, referring to the reform program.


Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

Updated 19 June 2019
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Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

  • British Airways owner IAG signs letter of intent to buy 200 of its 737 MAX jets
  • Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes

PARIS: Airbus, reeling from the potential loss of a major customer for its best-selling A320neo as British Airways owner IAG placed a lifeline order for the grounded 737 MAX, prepared to hit back with more orders for its A321XLR on Wednesday.
The planemaker has been negotiating with US airlines investor Bill Franke whose Indigo Partners has also been known to place orders for multiple airlines within its portfolio and could reel it in for the Paris Air Show, industry sources said.
Airbus declined to comment.
After weathering intense scrutiny over safety and its public image, Boeing won a vote of confidence on Tuesday as IAG signed a letter of intent to buy 200 of its 737 MAX jets that have been grounded since March after two deadly crashes.
The surprise order lifted the energy of a previously subdued Paris Airshow, where the talk had been of the possible end of the aerospace cycle, given the issues at both Boeing and Airbus as well as geopolitical and trade tensions around the world.
Australia’s Qantas Airways said on Tuesday it would order 10 Airbus new A321XLR jets and convert a further 26 from existing orders already on the Airbus books.
Airbus is also in talks with leasing company GECAS and has been trying to secure an eye-catching order for the A321XLR from American Airlines, though the world’s largest carrier does not typically make announcements at air shows.
Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes.