RIYADH: State-owned Saudi Electricity Co. has transferred its entire stake in the Saudi Power Procurement Co. to the government, the company said in a bourse filing.
SPPC as of today is an independent company wholly owned by the government, following completion of all legal arrangements for sale and transfer of assets, liabilities, and contracts
SPPC and SEC also signed energy conversion agreements, bulk supplies, and fuel supply novations, all effective July 1.
With that, SEC, SPPC and the Ministry of Finance signed a fuel inventory sale agreement, which stipulates that the ministry shall pay SEC its net book value for the fuel inventory.
The sale price shall be calculated based on the book value of SPPC's net assets at the end of the second quarter of 2022.
SEC does not expect the carve-out of SPPC to negatively impact its business since SPPC possesses no material tangible assets.