ACWA Power, the Saudi-headquartered developer and operator of power and water projects, said on Monday that it has signed a share purchase agreement with Samsung C&T to acquire the Korean contractor's 4.99 percent share in the Hajr Electricity Production Company (HEPC).
HEPC is the project company for the 3,927-megawatt Qurayyah Independent Power Plant (IPP) in Saudi Arabia, one of the largest combined cycle gas-fired power projects in the world.
The stake purchase makes ACWA Power the second largest shareholder in HEPC after the off-taker Saudi Electricity Company (SEC), the company said in a press statement.
The agreement includes an option to purchase the remaining stake of Samsung C&T, the statement noted.
HEPC is currently majority owned by SEC with a 50 percent stake, and through a holding company, the remaining 50 percent ownership is held by a consortium of ACWA Power (increased to 22.49 percent from 17.5 percent previously); MENA Infrastructure Fund (15 percent); and Samsung C&T (down to 12.51 percent from 17.5 percent), according the statement.
The project deal was signed in 2011 and units commenced power delivery to the grid in 2013, the statement said, adding that the IPP's tariff was 15.5 percent lower than the nearest bidder.
The statement also noted that the total project cost was $2.7 billion, with approximately 75 percent of financing through long-term project-financed debt and the remaining in the form of equity.
(Writing by Madhura Deulgaonkar; Editing by Anoop Menon)
#Saudi Arabia #ACWA Power #Hajr Electricity Production Company (HEPC) #Qurayyah Independent Power Plant (IPP)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© Thomson Reuters Projects News 2020