ACWA Power to Buy 32% SWEC Stake from PIF for $225 Million
Increasing its total ownership to 62% in the facility
Saudi Arabia’s ACWA Power has entered into a definitive agreement to purchase a significant equity stake in Shuaibah Water and Electricity Company, marking a major expansion of its presence in the strategic utility asset. The transaction values the stake at approximately 843 million Saudi riyals, equivalent to about $225 million, and positions ACWA Power as the controlling shareholder.
Acquisition of PIF-Linked Stake
Under the terms of the agreement, ACWA Power will acquire the full holding owned by Water and Electricity Holding Company, known as Badeel. Badeel operates as a subsidiary of the Kingdom’s Public Investment Fund, and its divestment covers 32 percent of SWEC’s total share capital.
Majority Ownership and Risk Profile
Prior to the deal, ACWA Power already held an indirect interest in SWEC. Completion of the transaction will lift its total ownership from 30 percent to 62 percent. The company highlighted that the asset offers a stable investment profile, supported by long-term contracted revenues and limited operational exposure extending through 2030.
Transaction Structure and Subsidiary Role
The acquisition will be executed through Alwaha Projects Company, a fully owned subsidiary of ACWA Power. This structure aligns with the group’s broader investment and asset management strategy in the power and water sector.
Regulatory Clearances Awaited
Final completion of the transaction remains contingent on securing the necessary regulatory and governmental approvals. ACWA Power indicated that customary processes are underway to satisfy all applicable requirements.
Strategic Importance of the Shuaibah Plant
SWEC operates Saudi Arabia’s first independent water and power plant, underscoring its strategic value to the Kingdom’s infrastructure landscape. The facility combines a power generation capacity of 900 megawatts with desalination capabilities producing up to 880,000 cubic metres of water per day, making it a cornerstone asset in the national utilities network.
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