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).

 



Gold Prices Hit Records Above $3,300/oz

FILE PHOTO: Gold bars are displayed at a gold jewelry shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma/File Photo
FILE PHOTO: Gold bars are displayed at a gold jewelry shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma/File Photo
TT
20

Gold Prices Hit Records Above $3,300/oz

FILE PHOTO: Gold bars are displayed at a gold jewelry shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma/File Photo
FILE PHOTO: Gold bars are displayed at a gold jewelry shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma/File Photo

Gold prices pierced the $3,300 an ounce barrier to hit record highs as investors sought a refuge from the turbulence surrounding trade tensions between the United States and China.
Spot gold hit a record of $3,317.90 per ounce on Wednesday, resuming a rally based on US President Donald Trump's tariff policies, robust central bank buying and prospects of interest rate cuts by the Federal Reserve, Reuters reported.
"Gold is re-calibrating to reflect the current state of world affairs ... If the price is telling us something, then it’s a distinct warning bell," said independent analyst Ross Norman.
"High conviction buying that commenced about a year ago - likely unreported central bank buying - is being compounded by buying on price strength."
Bullion has gained around 26% so far this year, in a rise that has drawn comparisons with its 1980 rally during the Iranian Revolution, when prices shot up around 118% between November 1979 and January 1980.
Trump on Tuesday rolled out the latest of his tariff policies, ordering an investigation into potential new levies on all US critical minerals imports and other goods.
Gold is traditionally used to hedge against political turmoil.
"Some longer-term gold owners are taking profit at these fresh record highs, but new inflows are also running strong," said Adrian Ash, director of research at BullionVault.
Gold ETFs saw an inflow of 226.5 metric tons, worth $21.1 billion, in the first quarter of 2025, the largest amount since the first quarter of 2022, when markets were grappling with the consequences of Russia's invasion of Ukraine.
"ETF demand is the additional new component that had otherwise been missing and is certainly helping to fuel the rise," Norman added.
Gold has also gained from the lower dollar, near a three-year low, making bullion a more attractive investment for other currency holders.
"The next milestone for gold is $3,500. Expect that before too long," Norman added.
Central bank buying has further buoyed gold, with China's central bank adding to its reserves in March for the fifth straight month.
Gold posted 25 all-time highs this year, of which 13 are above the $3,000 level.