Saudi Electricity Company (SEC) shareholders voted on 18 December in favor of the formation of a power generation subsidiary that appears to be the second step in a government-led program to break up its generation business into four units for sale to private energy firms.

SEC announced the result of the vote on the Saudi Stock Exchange (Tadawul), where 18.8% of its shares are traded. The company’s main shareholder is Riyadh’s PIF sovereign wealth fund with 74.3%, while state...