Saudi Arabian company ACWA Power has sold more than a third of its stake in two subsidiaries to a Chinese state-owned company for SAR 595.9 million ($158.9 million).

In a statement on Wednesday, the Saudi-listed firm confirmed the completion of the sale and purchase agreements to divest 35% of its shareholding in ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company to China Southern Power Grid International (HK) Co. Ltd (CSGIHK).

The Chinese company is the global investment and development arm of the state-owned China Southern Power Grid, which operates energy grids across China and countries in Southeast Asia.

The ACWA Power subsidiaries hold 100% stake in two $1.3 billion renewable energy projects in Uzbekistan, the “Bash” and “Dzhankeldy” power plants, which have a combined capacity of 1GW.

Following the transaction, ACWA Power now holds 65% in the two projects.

The sale is the first “co-investment transaction” between ACWA Power and China Southern Power Grid for a large-scale renewable energy project in Central Asia.

In December 2022, the Saudi firm signed framework agreements with Chinese companies that lay the ground for financing, investing and building of ACWA Power’s energy projects in the kingdom and in the Belt and Road Initiative countries.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com