Saudi fund raises ownership stake in ACWA power to 50% -statement

SourceZawya
SectorFinancial Markets
CountrySaudi Arabia

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IRO/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...read more...