Saudi Electricity Co plans to establish a power generation subsidiary, pending shareholder approval, a step viewed by analysts as a sign the state-controlled power giant is pushing ahead with a long-awaited restructuring.
The company, the Gulf’s largest utility, said in a bourse filing last week that it called shareholders for a meeting on Dec. 18 “to vote on the establishment of a power generation subsidiary,” without giving further details.
The Public Investment Fund, the kingdom’s sovereign wealth fund, owns a 74 per cent stake in Saudi Electricity. The other major shareholder is state oil giant Saudi Aramco, which owns a stake of almost 7 per cent.
Saudi Arabia is embarking on a push to raise around $200bn in the next several years through privatisation programmes in 16 sectors ranging from oil to healthcare, education, airports and grain milling. Read more