Hassana Investment Company of Saudi Arabia has agreed to acquire 30% of Acwa Power’s shareholding in Rabigh Arabian Water & Electricity Company, an independent water, steam and power producer (Rawec IWSPP).

The deal, valued at 844 million Saudi riyals (US$225 million), marks the start of a long-term partnership, the companies say.

Rawec IWSPP supplies essential utilities to the Petro Rabigh petrochemical complex under a long-term offtake contract. Acwa Power currently holds a 99% stake in Rawec.

"We are delighted to welcome Hassana Investment Company as a strategic partner in Rawec IWSPP," says Acwa Power chief executive officer Marco Arcelli. "This transaction not only reflects our commitment to our capital recycling strategy by introducing valuable partners at the project level, but also underscores our dedication to creating significant value for our stakeholders.“

Hassana CEO Saad bin Abdulmohsen Al-Fadly adds: "This transaction is aligned with Hassana’s long-term investment strategy to acquire well-performing unique infrastructure assets with a stable and attractive cashflow profile underpinned by long-term offtake agreements."