ACWA Power Company announces acquisition of power generation and water desalination assets in Kuwait and Bahrain
| Element List | Explanation |
|---|---|
| Introduction | ACWA Power Company announces signing of a Share Purchase Agreement (“SPA”) to acquire gas-fired power generation (4.6GW), water desalination (1,114k m3/day) and related O&M companies in Kuwait and Bahrain from a subsidiary of Engie SA. |
| Transaction Details | The transaction structure is as follows: 1- Acquisition through a newly created SPV under ACWA Power of the operating companies of a. Az-Zour North in Kuwait (18% stake) b. Al Ezzel (45% stake), Al Dur (45% stake) and Al Hidd (30% stake) in Bahrain. 2- Acquisition through a newly-created O&M platform, underneath ACWA Power Company of O&M companies a. Az Zour North O&M Co (50% stake) b. Al Ezzel O&M Co (100% stake). |
| Transaction Amount | SAR 2,599 million (USD 693 million) |
| Transaction Conditions | Completion of the transaction is subject to the satisfaction of the conditions precedent (CP) in the SPA, including the securing of all the necessary regulatory approvals. |
| Parties of the Transaction | Seller: 1- KAHRABEL FZE (Subsidiary for Engie SA) Buyer: 1- Subsidiaries underneath ACWA Power Company to be established after the SPA signing |
| Transaction Financing Method | Mix of ACWA Power Company's own funds and financing |
| Date of Entering Into The Transaction | 2025-02-18 Corresponding to 1446-08-19 |
| Description of Activity of The Asset Subject of The Transaction | Gas-fired power generation (4.61GW), water desalination (ca.1,114k m3/d) and related O&M companies in Kuwait and Bahrain, including: - Az Zour North (Kuwait) IWPP (1,520MW CCGT, 486 thousand m3/day MED) - Al Ezzel (Bahrain) - IPP (940MW CCGT) - Al Dur (Bahrain) IWPP (1,220MW CCGT, 218 thousand m3/day SWRO) - Al Hidd (Bahrain) IWPP (930MW CCGT, 409 thousand m3/day MSF) |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | Attached |
| Transaction reasons | The acquisition will reinforce ACWA Power’s position as global leader in water desalination and expand its presence in the power generation market, with accretive recurring net income and free cash flows based on secured offtake contracts. The acquired assets are fully operational and well maintained. |
| Expected Impact of the Transaction on the Company and Its Operations | The transaction is accretive in recurring net income and free cash flow to equity. While the transaction reinforces ACWA Power’s market leading positions in both Power generation and Water desalination, it will also expand its industry-leading O&M capabilities. By making its inaugural entry into the Kuwaiti market through the acquisition of a stake in the Az-Zour North Facility, ACWA Power will achieve a significant milestone in its strategic efforts to expand its presence within the regional energy and water sector. |
| Related Parties | NA |
| Attached Documents |  |
Attachments
125_21852_2362_2025-02-18_22-01-33_en.pdf819_21852_2362_2025-02-18_22-01-57_en.pdf
633_21852_2362_2025-02-18_22-01-43_en.pdf
985_21852_2362_2025-02-18_22-01-47_en.pdf
608_21852_2362_2025-02-18_22-01-55_en.pdf
