Kingdom Holding Closes Majority Stake Purchase in Saudi Arabia's Al Hilal Club
Kingdom Holding (SASE:4280) finalized its acquisition of a majority stake in Al Hilal Club Co from Saudi Arabia's Public Investment Fund for a full consideration of 840 million Saudi riyals, in line with the country's Vision 2030 goals.The Saudi investment holding company now owns 70% of the professional football club following the completion of all necessary approvals and procedures, as well as the full payment of the transaction amount, while the sovereign wealth fund retains the remaining 30%, the companies said in separate Tuesday releases.Kingdom Holding noted that there are no new costs associated with the deal and the transaction value remains unchanged from the initial announcement in April.Under the share sale and purchase agreement, the deal has an implied enterprise value of 1.4 billion riyals. The full consideration amount represents 70% of the target entity's equity valuation of 1.2 billion riyals.The acquisition is part of Kingdom Holding's efforts to expand its presence in the country's sports and entertainment industry. It also supports the Public Investment Fund's strategy of maximizing returns and redeploying capital within the local economy."Al-Hilal is a national symbol and a source of pride for the Saudi people. This acquisition expresses our deep belief in the power of sports as a unifying force and a catalyst for national development. By applying our global investment standards and cultivating strategic partnerships, we will unlock Al-Hilal's full potential while preserving its history and identity," Kingdom Holding Chairman Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud said during the announcement of the deal.In a Tuesday statement, the board of directors of Al Hilal Club welcomed the holding company's role as its principal shareholder, saying the development marks a "new chapter in the club's journey."
