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ACWA POWER Co. (“ACWA Power” or “the Company”) announces the closing of the transaction for the sale of its 32% effective shareholding (entire shareholding) in Shuqaiq Water and Electricity Company (“Shuqaiq IWPP”) including the sale of 32% interest (partial shareholding) in the O&M contract, effectively from 17 March 2022.

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Introduction ACWA POWER Company announces the closing of the transaction for the sale of its 32% effective shareholding (entire shareholding) in Shuqaiq Water and Electricity Company (“Shuqaiq IWPP”), an equity accounted investee of ACWA Power, including the sale of 32% interest (partial shareholding) in the O&M contract, which was previously with the Company’s wholly owned subsidiary, First National Operations and Maintenance Company (“NOMAC”), effective from 17 March 2022 (“the Closing Date”). On the Closing Date, the shares were transferred to Al Jomaih Energy and Water Company (“the Buyer”), having met all conditions to the sale/closing as per The Share Purchase Agreement that was signed on 7 September 2021. The sale consideration of SAR 391.5 million was paid in cash by the Buyer.
Transaction Details Sale of the Company’s 32% stake in Shuqaiq Water and Electricity Company (“Shuqaiq IWPP”) and (partial shareholding) of 32% in the O&M contract.
Transaction Value SAR 391.5 million
Transaction Terms N/A
Parties of the Transaction Arabian Company for Water and Power Projects

First National Operations and Maintenance Company (“NOMAC”)

Kahromaa Company

Al Jomaih Energy and Water Company

Transaction Execution Date 2022-03-17 Corresponding to 1443-08-14
Description of the Business of the Asset forming the Subject Matter of the Transaction Shuqaiq IWPP is an oil-fired asset located in the Kingdom of Saudi Arabia, with 850 MW power and 212,000 m3/day water desalination capacity. The project commenced commercial operations in 2011 and has a 20-year PWPA (offtake agreement) expiring in 2031.
Asset Book Value The carrying amount of the assets as at the Closing Date was SAR 398.4 million.
Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction Attached.
Transaction reasons The sale is part of ACWA Power’s capital recycling strategy and brings it a step closer to its target of reducing its carbon intensity by 50% by 2030 compared to 2020 levels and achieving net zero emission by 2050.
Expected Impact of the Transaction on the Company and Its Operations The transaction did not result in any material financial impact to the Company.
Details of Using The Proceeds of the Asset Sale The proceeds will be used for general corporate purposes.
Related Parties N/A
Attached Documents        

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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