Saudi PIF hires HSBC for ACWA Power stake deal: report

The Saudi Public Investment Fund (PIF) has appointed HSBC Saudi Arabia to advise on acquiring a stake in Riyadh-based ACWA Power, Reuters reported, citing sources familiar with the matter.

ACWA Power, meanwhile, has selected JP Morgan to advise on the potential deal, the sources added.

PIF already owns a 13.7 percent stake in ACWA, a global operator of power and water plants, through its subsidiary Sanabil Investments.

It is not clear yet whether the new investment would be structured as a stake increase by Sanabil or if the PIF will take a direct stake.

The fund might increase its total holding to between 25 percent and 35 percent, Reuters reported earlier this month, citing an unnamed source.

Other shareholders in ACWA include Saudi's Public Pension Agency, which bought a 5.7 percent stake at the same time as Sanabil, and World Bank unit International Finance Corporation, which invested $100 million for an undisclosed holding in mid-2014, the report said.