KHOBAR: Saudi Arabia will consider selling a large stake in Saudi Electricity to SoftBank Vision Fund, but the Saudi government would retain a controlling shareholding, the utility said on Tuesday.
Saudi Arabia’s Public Investment Fund, which holds a 74 percent stake in Saudi Electricity, signed a memorandum of understanding with SoftBank Vision Fund, the world’s largest private equity fund, for SEC to develop 3 gigawatts of solar energy in 2018, SEC said.
No financial details of the agreement were made public.
The statement said “the parties” would also evaluate the possibility of SoftBank Vision Fund, which is backed by Japan’s SoftBank Group and Saudi Arabia’s main sovereign wealth fund, acquiring a big stake in Saudi Electricity.
The Saudi government would retain a controlling stake, it said.
SEC’s assets are estimated to be $100 billion. The Saudi government has been considering privatizing the company for years. It is not clear how the possible transaction will affect those plans.
Oil giant Saudi Aramco currently owns nearly 7 percent of Saudi Electricity, while the rest is held by the public.
The Public Investment Fund and SoftBank Vision Fund will also build manufacturing and storage solar facilities and create jobs in the Kingdom.
Due diligence will be completed by the end of February next year, the company said.
SoftBank Vision Fund has raised more than $93 billion to invest in technology sectors such as artificial intelligence and robotics.
— Reuters