Saudi Electricity buys 25% stake in PIF's unit for SAR 254 mln

Saudi Electricity Co. headquarters

Saudi Electricity Co. (SEC) signed on Oct. 5 an agreement with the Public Investment Fund (PIF) to acquire a 25% stake in the latter's wholly-owned subsidiary, Electric Vehicle Infrastructure Co., for SAR 254 million.

In a statement to Tadawul, SEC said the transaction was funded from a mixture of its resources.

The deal includes negotiable terms and conditions according to equivalent practices to ensure participation in the subsidiary's management and intellectual property rights, as well as regulation of the rights to compete and exit.

The acquisition is a promising opportunity to enter the field of electric vehicles (EVs) through a minority investment in a company specialized in the development of EV recharge infrastructure. In addition, the deal will strengthen the SEC’s position in the market and support its business in the future.

The PIF is a related party to the deal, SEC noted.

Electric Vehicle Infrastructure Co., which is a single shareholder closed joint stock company, specializes in forming partnerships to provide alternate current (AC) and direct current (DC) power charging infrastructure for EVs.

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