ACWA Power announces closing of Sale and Purchase Agreement(s) to sell 35% of its shareholding in certain subsidiaries.
| Element List | Explanation |
|---|---|
| Transaction Details | Closing of the Sale and Purchase Agreement(s) to sell 35% of ACWA Power’s shareholding in ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company Limited, for which the SPA(s) were signed between ACWA Power Green Energy Holding and China Southern Power Grid International (HK) Co. Ltd. Following the successful completion of the conditions precedent, ACWA Power share in these two projects is now 65%.
ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company Limited holds 100% share of the project companies relating to Bash and Dzhankeldy 1GW wind projects in Uzbekistan. |
| Transaction Amount | SAR 595.9 Million |
| Transaction Conditions | NA |
| Parties of the Transaction | • Seller: ACWA Power Green Energy Holding
• Purchaser: China Southern Power Grid International (HK) Co., Ltd. • Target companies: ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company Limited |
| Transaction Financing Method | NA |
| Date of Entering Into The Transaction | 2024-07-16 Corresponding to 1446-01-10 |
| Description of Activity of The Asset Subject of The Transaction | The Bash 500 MW wind farm and Dzhankeldy 500MW wind farm are greenfield independent power projects that are developed by ACWA Power in the Republic of Uzbekistan, for which ACWA Power and the JSC National Electrical Grid of Uzbekistan (sole offtaker) signed a 25-year Power Purchase Agreement for the development, construction and operation in aggregate of 1GW.
The projects are located in the Bukhara region and being developed on a ‘Build, Own, Operate, Transfer’ basis. |
| Asset Book Value | The projects are under construction and the estimated total investment cost is SAR 5.1 Billion. |
| 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 in addition to the Company’s business model that encourages cooperation with strong and reputable equity partners. |
| Expected Impact of the Transaction on the Company and Its Operations | China Southern Power Grid International (HK) Co., Ltd. (CSGI) is the overseas investment arm of CSG group registered in Hong Kong. CSG and CSGI, respectively, are rated A+ (sovereign rating) by S&P, Moody’s, and Fitch.
China Southern Power Grid is one of top grid companies in China as well as a worldwide leading grid company covering business lines of power grid, power transmission, pump storage hydropower, renewable energy, integrated smart energy, etc. |
| Details of Using The Proceeds of the Asset Sale | The proceeds will be used for general corporate purposes. |
| Related Parties | NA |
| Attached Documents |  |
Comments