Saudi Electricity approves transfer of subsidiary’s ownership to govt

Saudi Electricity headquarters

Saudi Electricity Co.'s (SEC) shareholders approved, on Jan. 30, the sale and transfer of the company's entire ownership in Saudi Power Procurement Co. (SPPC) the "principal buyer" to the government, the utility provider said in a bourse statement.

Shareholders also approved delegating SEC's board of directors to undertake all necessary legal procedures related to the stake sale and transfer.

In addition, shareholders gave the go-ahead for the transactions and contracts between SEC and Gulf International Bank, in which board member Najm Al-Zaid has an indirect interest. It is a one-year finance agreement, as part of the ordinary course of business, with no preferential benefits granted, at a total value of SAR 500 million.

Shareholders also approved the policy of criteria for participation in competing business.

In November 2021, the utility provider said it received a letter from the Minister of Energy and Chairman of the Ministerial Committee for the Restructuring of the Electricity Sector notifying SEC of the Cabinet resolution no. 227, dated 18/04/1443H (Nov. 23, 2021), Argaam earlier reported.

The resolution is part of the electricity sector’s restructuring program.