13/09/2017 03:55 AST

Kingdom Holding, run by billionaire Prince Alwaleed bin Talal, plans to acquire a 16.2 percent stake in Banque Saudi Fransi from Credit Agricole, which is valued at around SR5.8 billion ($1.5 billion).

The deal would make the Saudi tycoon the largest shareholder in the bank, which has 86 branches throughout the Kingdom.

The prolific investor has stakes in global companies that include Twitter, Apple and News Corp. Kingdom plans to buy the stake from Credit Agricole Corporate and Investment Bank (CACIB), the investment banking unit of the French lender – which will remain as a strategic investor in the Saudi bank.

Prince Alwaleed bin Talal said “Our investment in Basque Saudi Fransi demonstrates our core belief in the outlook for the Saudi economy underpinned by Vision 2030 and the National Transformation Plan.”

Saudi Arabia is encouraging investment in its financial sector as it seeks to reduce its dependence on the oil industry and attract global financial names to establish operations in the Kingdom.

A massive privatization program that includes the partial listing of Saudi Aramco, the national oil company, is spurring investment activity and is expected to provide a big boost to capital markets as international banks help to raise debt and finance deals.

Goldman Sachs last month won approval to trade equities in Saudi Arabia, while Citigroup, in which Prince Alwaleed is also an investor, obtained an investment banking license in April. The Credit Suisse transaction is expected to close in the second half of 2017, subject to customary closing conditions including required regulatory approvals, Kingdom said in a statement.

The Saudi units of HSBC Holdings and Royal Bank of Scotland Group are exploring a potential merger which would create the third-biggest bank in the country with assets of almost $80 billion.

The sale of the Saudi Fransi stake will help Credit Agricole increase its cash buffers. It also has an option to sell an additional 5 percent stake. “Given the current market price, Kingdom Holding appears to have got a good discount for the stake purchase and could reflect positively on their books when the sale materializes,” Muhammad Potrik, head of research at Riyad Capital, told Bloomberg News.

Credit Agricole has been active in Saudi Arabia since 1949 and has been associated with Banque Saudi Fransi since its creation in 1977.

The Saudi bank has 3,200 employees across the country. Jean-Yves Hocher, CEO of CACIB, said that the bank planned to “further develop its direct presence and extend its activities in the country.”


Arab News

KHC sells interest in Four Seasons Resort Langkawi in $90m deal

21/09/2017

Kingdom Holding Company (KHC) chaired by Prince Alwaleed bin Talal, recently announced that it has successfully sold its 90 percent interest in the Four Seasons Resort Langkawi, Malaysia to Leisure V

Arab News

KHC closes Banque Saudi Fransi stake deal

21/09/2017

Kingdom Holding Company, an investment firm owned by Saudi billionaire Prince Alwaleed bin Talal, said it has completed the acquisition of 16.2 per cent stake in Banque Saudi Fransi for SR29.5 ($7.8

Trade Arabia

Prince Alwaleed's Kingdom Holding sell stake in Malaysia Four Seasons

18/09/2017

Saudi Arabia’s Kingdom Holding Company (KHC), the investment company of Saudi billionaire prince Alwaleed bin Talal, has sold its interest in Malaysia’s Four Seasons Resort, the company said on Sund

The National

Ticker Price Volume
QNBK 123.30 103,897
MMG 0.00 0
BURUJ 34.50 110,831
SABIC 100.87 2,504,855
ARNB 24.06 13,626
EEC 17.29 463,643
NAMA 21.93 1,439,725
KINGDOM Sector Market
P/E
Price/BookValue
Dividend Yield (%)
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
ATTMCO 15.40 0.00 (0.00%)
SAIC 13.08 0.02 (0.15%)
ABDICO 28.26 -0.08 (-0.29%)
KHC sells interest in Four Seasons Resort Langkawi in $90m deal

21/09/2017

Kingdom Holding Company (KHC) chaired by Prince Alwaleed bin Talal, recently announced that it has successfully sold its 90 percent interest in the Four Seasons Resort Langkawi, Malaysia to Leisure V

Arab News

TAQA controlled Oman's Sohar Aluminium gradually restarting production

21/09/2017

Oman’s Sohar Aluminium said on Wednesday it gradually restarted production on Friday after an interruption in August, and was working to return to full production as soon as possible. “Sohar Alumi

Reuters

Banque Saudi Fransi announces the Resignation of a Board Member

21/09/2017

Banque Saudi Fransi announces that BSF Board Member, Mr. Francois Jean MARION (non executive) has resigned from the Board of Directors on 20/9/2017 for personal reasons. Mr. MARION resignat

Tadawul

STC announcement regarding its mobile frequency licenses

21/09/2017

Reference to the announcement of the Saudi Telecommunications Company published on Tadawul website on 13/9/1438 H corresponding to 8/6/2017AD regarding obtaining the notification by the Communication

Tadawul

Emirates NBD most trusted lender in UAE

21/09/2017

Emirates NBD, Dubai’s biggest bank by assets, is the most trusted local lender in the UAE and has the most loyal customers, according to a survey by Brand Finance Banking.

Bank clients su

The National