MARAFIQ acquires Veolia Middle East’s 51% stake in JAOMC

Logo of Power and Water Utility Company for Jubail and Yanbu (MARAFIQ)

Power and Water Utility Company for Jubail and Yanbu (MARAFIQ) announced its acquisition of Veolia Middle East’s 51% stake in Jeddah Althaniya Operations and Maintenance Co. (JAOMC).

In a statement to Tadawul, MARAFIQ explained that JAOMC is a joint venture between MARAFIQ and Veolia Middle East, established to operate and maintain the independent sewage treatment plant in Jeddah with a capital of SAR 300,000.

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MARAFIQ holds 49% of shares, while Veolia Middle East holds 51%. After acquiring Veolia’s stake, MARAFIQ will own 100% of JAOMC.

Based on the signed acquisition agreement, MARAFIQ will acquire 15.3 million shares from Veolia Middle East.

The acquisition procedures are complete, and the date of transfer of ownership and the regulatory documents will be announced later, the company noted.

The full acquisition of JAOMC will bring 100% of the operation and maintenance (O&M) profits to MARAFIQ, significantly boosting its returns from the project.

It is expected that the positive financial impact of this acquisition will result in additional profits of approximately SAR 75 million over the course of the 25-year project agreement, starting from the project’s commercial operation date on Oct.1, 2023.

This acquisition aims to enhance the company’s ability to improve its services and maintain operational excellence, aligning with the aspirations of all its customers, the statement added.

No related parties are included in the deal, the company further indicated.