Saudi PIF Buys Istidamah Holding’s Stake in MBC for $2 Billion

Photo taken during MBC Group's opening of its new headquarters in Riyadh (SPA)
Photo taken during MBC Group's opening of its new headquarters in Riyadh (SPA)
TT
20

Saudi PIF Buys Istidamah Holding’s Stake in MBC for $2 Billion

Photo taken during MBC Group's opening of its new headquarters in Riyadh (SPA)
Photo taken during MBC Group's opening of its new headquarters in Riyadh (SPA)

The Saudi media group MBC has announced that Istidamah Holding, one of its shareholders, signed an agreement to sell its 54% stake to the Public Investment Fund (PIF) for around $1 billion (SAR 7.5 billion). This has pushed MBC’s share price up by the maximum limit of 10% in Sunday’s trading.
According to the terms of the sale and purchase agreement, disclosed by MBC to the Saudi Stock Exchange (Tadawul) on Sunday, Istidamah Holding, owned by the Ministry of Finance, will transfer its entire stake in MBC to PIF, positioning PIF as the controlling shareholder of the company.
MBC reported that the private transaction values each share at SAR 41.6 ($11.1), involving the sale of 179.55 million shares. The deal is expected to close following regulatory approvals.
MBC shares rose to the maximum limit of 10%, reaching SAR 45.75 after the announcement.
In his comments on the deal, the Senior Head of Asset Management at Arbah Capital, Mohammad Farraj, told Asharq Al-Awsat that the acquisition of a significant stake in MBC by the Saudi Public Investment Fund marks a milestone in the history of media and entertainment in the region.
He explained that this strategic move reflects increased confidence in the sector’s ability to achieve sustainable growth and underscores the government’s commitment to supporting and developing this vital economic engine.
In the long term, Farraj said he expects MBC’s stock to achieve sustainable growth for several reasons, including government support, as MBC will benefit from substantial government backing through PIF, enabling it to pursue ambitious projects and expand its operations.
In addition, MBC plans to focus on producing high-quality content to meet diverse audience needs, which will enhance its popularity and attract more advertisers, he remarked.
Farraj pointed out that the company aims to broaden its reach into new markets outside Saudi Arabia, increasing revenues and reinforcing its position as a global brand.
The analyst also suggested that PIF’s acquisition of MBC could attract further local and foreign investments into the sector, bolstering its competitiveness and innovation.
“A new generation of innovative products and services, such as digital platforms and specialized apps, will enhance user experiences and open new growth avenues,” he said.
MBC was the first new listing on the Tadawul index in 2024, following its initial public offering (IPO) of 10% of its shares at the end of the previous year, raising $222 million. The group offered 33.25 million common shares, representing 10% of its capital, at an IPO price of SAR 25 per share.
MBC Group’s profits rose by 66.5% year-on-year in the second quarter of the current year, reaching $31 million (SAR 116.4 million) in net income, despite an 11.6% drop in revenue, which fell to $256.8 million (SAR 963.9 million).

 



Trump Says Deal with Xi ‘Extremely Hard’ as Steel Tariffs Double

US President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Reuters)
US President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Reuters)
TT
20

Trump Says Deal with Xi ‘Extremely Hard’ as Steel Tariffs Double

US President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Reuters)
US President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019. (Reuters)

Donald Trump said Wednesday it was "extremely hard" to reach a deal with China, but EU and US officials touted progress in their own trade talks despite the US president doubling his metal tariffs. 

Trump's latest salvos came as ministers from Organization for Economic Cooperation and Development (OECD) countries gathered in Paris to discuss the outlook for the world economy in light of the trade war. 

Trump's sweeping tariffs on allies and adversaries have strained ties with trading partners and sparked a flurry of negotiations to avoid the duties. 

The White House has suggested that Trump will speak to Chinese President Xi Jinping this week, raising hopes they can soothe tensions and speed up a trade deal between the world's two biggest economies. 

However, early on Wednesday, Trump appeared to dampen hopes for a quick deal.  

"I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!" he posted on his Truth Social platform.  

Asked about the remarks during a regular press briefing, Chinese foreign ministry spokesman Lin Jian said Beijing's "principles and stance on developing Sino-US relations are consistent."  

China was the main target of Trump's April tariff blitz, hit with levies of 145 percent on its goods and triggering tit-for-tat tariffs of 125 percent on US imports.  

Both sides agreed to temporarily de-escalate in May, after Trump delayed most sweeping measures on other countries until July 9.  

- US-EU talks 'advancing quickly' -  

Trump's latest remarks came hours after he increased his tariffs on aluminium and steel from 25 percent to 50 percent, raising temperatures with various partners while exempting Britain from the higher levy.  

In addition, EU goods will be hit with 50-percent tariffs on July 9 unless the 27-nation bloc reaches a deal with Washington. The EU has vowed to retaliate.  

US Trade Representative Jamieson Greer said after talks with EU counterpart Maros Sefcovic in Paris that the negotiations were "advancing quickly."  

Greer said the meeting was "very constructive and indicates a willingness by the EU to work with us to find a concrete way forward to achieve reciprocal trade."  

Sefcovic said the doubling of metal tariffs "doesn't help the negotiations" but the two sides were nonetheless "making progress" in their negotiations.  

"We did very much focus on these negotiations, and I still believe in them," Sefcovic said at a news conference after meeting Greer on the sidelines of the OECD gathering in Paris.  

He said he was optimistic that a "positive result" could be reached.  

The US-EU meeting took place a day after the OECD cut its forecast for global economic growth, blaming Trump's tariff blitz for the downgrade. 

"We have to keep our cool and always show that the introduction of these tariffs is in no one's interest," French trade minister Laurent Saint-Martin said.  

After talks between UK Trade Secretary Jonathan Reynolds and Greer on Tuesday, London said that imports from the UK would remain at 25 percent for now. Both sides needed to work out duties and quotas in line with the terms of a recently signed trade pact.  

"We're pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs," a British government spokesperson said.  

- White House wants offers -  

Mexico will request an exemption from the higher tariff, Economy Minister Marcelo Ebrard said, arguing that it was unfair because the United States exports more steel to its southern neighbor than it imports.  

"It makes no sense to put a tariff on a product in which you have a surplus," Ebrard said.  

Mexico is highly vulnerable to Trump's trade wars because 80 percent of its exports go to the United States, its main partner.  

While some of Trump's most sweeping levies face legal challenges, they have been allowed to remain in place for now as an appeals process takes place.  

White House press secretary Karoline Leavitt confirmed on Tuesday that the Trump administration sent letters to governments pushing for offers by Wednesday as the July 9 deadline approaches.