ACWA Power Expands Portfolio with Strategic Acquisition of Assets in Bahrain and Kuwait

- ACWA Power acquires stakes in power generation and water desalination companies operating a combined 4.61GW of gas-fired power generation and 1.11 million cubic meters per day (m3/day) of water desalination capacity from ENGIE

- By making its inaugural entry into the Kuwaiti market through this acquisition, ACWA Power bolsters its presence in the regional energy and water sectors.

Riyadh, Kingdom of Saudi Arabia: ACWA Power, the world's largest private water desalination company, leader in energy transition, and first mover into green hydrogen, has announced the signing of a Share Purchase Agreement (SPA) with the regional subsidiary of French utility developer ENGIE, to acquire assets at an amount of $693 million. This strategic acquisition encompasses operating capacities of 4.61GW of gas-fired power generation and 1.11 million cubic meters per day (m3/day) of water desalination facilities, as well as the related operations and maintenance companies in Kuwait and Bahrain.

Under the terms of the agreement, ACWA Power will acquire ENGIE's shares in the four key operating assets. This includes an 18% stake in the Az Zour North (IWPP) in Kuwait, alongside 45% stakes in both the Al Ezzel (IPP) and Al Dur (IWPP) projects, as well as a 30% stake in the Al Hidd (IWPP) facility, all situated in Bahrain. ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, specifically Az Zour North O&M Company (50% stake) and Al Ezzel O&M Company (100% stake). Completion of the transaction is subject to customary regulatory and other stakeholder approvals.

The secured contracted revenue streams from the acquired assets reinforce ACWA Power’s broader strategy of tripling its assets under management to USD250 billion by 2030.

Goldman Sachs Saudi Arabia acted as the sole financial advisor, while King & Spalding acted as the legal advisor to ACWA Power.