Saudi fund raises ownership stake in ACWA Power to 50%

Acwa Power windmills in Jbel Sendouq, on the outskirts of Tangier, Morocco, June 29, 2018. (Reuters)
Short Url
Updated 20 November 2020

Saudi fund raises ownership stake in ACWA Power to 50%

  • ACWA Power is planning an IPO and leads a consortium that will build and operate renewable power-based utilities at Saudi Arabia’s flagship Red Sea tourism project
  • PIF, which manages $360 billion worth of funds, pursues a two-pronged strategy — building an international portfolio of investments and investing locally in projects

CAIRO/DUBAI: The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, said on Thursday it has increased its stake in ACWA Power to 50% from 33.6% as part of a move to support the renewable energy sector in Saudi Arabia.
ACWA Power is planning an initial public offering and leads a consortium that will build and operate renewable power-based utilities at Saudi Arabia’s flagship Red Sea tourism project.
“We believe that ACWA Power will play a significant role in both driving and diversifying economic growth in the future — while also providing enduring commercial return for the people of the kingdom,” the fund said in a statement.
In June, ACWA Power’s chief executive had told Reuters the company expects to achieve its target of more than $10 billion in new investments this year, as the coronavirus pandemic had “minimal impact” on its projects.
The company, which had delayed its IPO plans two years ago, is still committed to a planned IPO, although execution will depend on the right timing and market conditions, Chief Executive Paddy Padmanathan said.
The stake increase by the PIF was expected after Yasir Al-Rumayyan, the head of Saudi PIF, said last year it planned to increase its stake in ACWA Power to 40% from 29.28%.
PIF, which manages $360 billion worth of funds, pursues a two-pronged strategy — building an international portfolio of investments and investing locally in projects that will help reduce Saudi Arabia’s reliance on oil.
A US regulatory filing this week showed the PIF had cut its exposure to North American equities by $3 billion in the third quarter, offloading some exchange traded funds (ETF) and stocks.


Scammers fool Britons with investment firm clones, says trade body

Updated 28 November 2020

Scammers fool Britons with investment firm clones, says trade body

  • Losses amounted to 9.4 million pounds ($12.56 million) between March and mid-October

LONDON: More than 200 British retail investors have lost nearly 10 million pounds ($13.4 million) in total to sophisticated investment scams since a government lockdown in March to fight the COVID-19 pandemic, a trade body said on Saturday.
Fraudsters cloned genuine investment management firms’ websites and documentation, and advertised fake products on sham price comparison websites and on social media, the Investment Association said.
Greater financial uncertainty and more time spent online have likely contributed to the increase in scams, industry sources say.
Losses amounted to 9.4 million pounds ($12.56 million) between March and mid-October, the IA said, based on information it got from member firms which had been cloned.
“In a year clouded in uncertainty, organized criminals have sought opportunity in misfortune by attempting to con investors out of their hard-earned savings,” Chris Cummings, chief executive of the Investment Association said.
The investment management industry was working closely with police and regulators to stop the scams, he added.
Britain’s Action Fraud warned earlier this month that total reported losses from all types of investment fraud came to 657 million pounds between September 2019 and September 2020, a rise of 28% from a year ago. Reports spiked between May and September, following Britain’s first national lockdown, the national fraud and cybercrime reporting center added.