Khazanah Nasional Bhd’s divestment of its 40% stake in Malaysian Shoaiba Consortium Sdn Bhd will enable it to exit with a strong healthy profit.

Khazanah said it assessed all opportunities for divestment against set financial and strategic targets, with the divestments depending on the strength of the market, as well as the availability, quality and credibility of buyers.

Khazanah, under its new mandate, operates on a two-fund model: A commercial fund and a strategic fund.

Currently the consortium has a 50 percent equity interest in Saudi-Malaysia Water and Electricity Co Ltd (Samawec), who owns a 60% stake in Shuaibah Water and Electricity Co Ltd (SWEC), and also 60% in Shuaibah Expansion Holding Company (Sehco), which owns a 97.5% stake in Shuaibah Expansion Project Company (Sepco).

SWEC currently owns the Shuaibah 3 Independent Water and Power Plant, the first and largest of its kind in Saudi Arabia.