SEC Plans Powergen Subsidiary As Step Towards Break-Up

Riyadh is readying power privatization by hiving off SEC’s key generation assets in a separate subsidiary. The subsequent split into four private generators is planned.

Saudi utility SEC has invited shareholders to a meeting in Riyadh on 18 December to vote on the proposed establishment of a “power generation company affiliated to the Saudi Electricity Company” in a move that is likely the next step towards privatization of SEC.

The Saudi government is SEC’s key shareholder via its PIF sovereign wealth fund (74.3%) whilst state oil giant Aramco has 6.9%. The remaining 18.8% is floated on the Saudi Stock Exchange (Tadawul).

SEC announced the planned subsidiary in a Tadawul filing on 26 November. It gave no further information on the proposed new company. However, given SEC’s recent acceleration of preparations for break-up, the new firm will likely hold SEC’s key generating assets ready for unbundling. SEC’s only other substantial asset is its wholly-owned National Grid transmission and distribution subsidiary, the fate of which has yet to be decided, whilst its Dawiyat subsidiary controls a fiber-optic network. (CONTINUED - 604 WORDS)

DATA INSIDE THIS ARTICLE

chart SEC Revenue By Regional Unit ($Bn)