By Hadeel Al Sayegh
DUBAI (Reuters) -Saudi Arabia’s ACWA Power plans to buy stakes in assets in Kuwait and Bahrain worth $693 million from French utility developer Engie, the companies said in a joint statement on Wednesday.
The share purchase agreement covers operating capacities of 4.61 GW of gas-fired power generation and 1.11 million cubic meters per day (m3/day) of water desalination facilities, they said.
It also includes the related operations and maintenance companies in Kuwait and Bahrain, it added.
“We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” ACWA Power CEO Marco Arcelli said.
The transaction comprises of an 18% stake in the Az Zour North in Kuwait. Additionally, ACWA is also acquiring 45% stakes in both the Al Ezzel and Al Dur projects, as well as a 30% stake in the Al Hidd facility, all situated in Bahrain.
ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, it said.
Completion of the transaction is subject to customary regulatory and other stakeholder approvals.
(Reporting by Hadeel Al Sayegh; Editing by Muralikumar Anantharaman and Rashmi Aich)
