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Saudi PIF Acquires 16.8% of Kingdom Holding Company

Saudi PIF Acquires 16.8% of Kingdom Holding Company

Monday, 23 May, 2022 - 10:30
The Saudi Public Investment Fund continues to seize successful opportunities. (Asharq Al-Awsat)

The Saudi Public Investment Fund has acquired 625 million shares of the Kingdom Holding Company (KHC), representing 16.87 percent, with a total value of 5.6 billion riyals ($1.5 billion). The remaining 78.13% will be under the ownership of Prince Alwaleed bin Talal.

The deal with KHC was made through a private sale and purchase transaction at SR9.09 each.

The transaction was expected to take place on Saudi Arabia’s stock exchange Tadawul on Sunday, the company said.

The Saudi sovereign fund continues to seize opportunities in successful giant companies, the latest of which was its acquisition of a five percent stake in the Japanese video game company Nintendo. The PIF has also taken stakes in video game companies Nexon, Capcom and Koei Tecmo.

Most recently, the PIF announced the launch of Saudi Coffee Co., aimed at turning Saudi coffee beans into a global product with $320 million to be invested in the next 10 years.

The launch of the company comes in line with the PIF plan, which focuses on developing 13 strategic sectors in the Kingdom, including the food and agriculture sector.

The Saudi Coffee Company will work to support the entire value chain of the local coffee product in partnership with the private sector, starting from the cultivation stage until the distribution of the product, taking into account the factor of sustainability in all stages of production, distribution and marketing.

The company will seek to raise standards and apply the best practices in this field, as well as creating many job opportunities in the sector, and strengthening the Kingdom’s capabilities to export the finest Saudi coffee beans to global markets.

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