The Public Investment Fund (PIF), in Saudi Arabia has hinted that it was close to sealing a deal with ACWA Power that will see it buy off a 10% stake in the power plant developer.
The Saudi sovereign wealth fund hopes to finalise the agreement in a few days, just ahead of a planned initial public offering (IPO) by ACWA Power, according to sources quoted by Bloomberg.
Sources also intimated that talks were still on going and that they may not necessarily yield a deal.
It is not immediately clear what valuation ACWA Power could get from the investment.
ACWA Power has announced its plans to raise more than $1bn from an IPO. The share sale would be one of the first to allow so-called Qualified Foreign Investors to participate in an IPO in the kingdom, according to Bloomberg.
ACWA Power currently runs and owns conventional power, renewable and water desalination assets across the Middle East, as well as projects in countries in Vietnam and South Africa.