KHC closes Banque Saudi Fransi stake deal

21/09/2017 06:07 AST

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) per share; a deal worth SR5.8 billion ($1.5 billion).

The Saudi group had acquired the key stake from Credit Agricole Corporate and Investment Bank, the corporate and investment banking arm of Crédit Agricole S.A., which, along with KHC, remains a strategic investor in the bank and continues to support the growth and expansion of its operations.

CEO Talal Almaiman said this signifies one of the largest non-governmental deals in Saudi Arabia and the closing of this transaction has increased the KHC's investments in Saudi Arabia from 23 per cent to 34 per cent.

With this move, KHC has become the largest shareholder in Banque Saudi Fransi, a full service commercial bank with a network of 86 branches across the kingdom, he stated. According to him, KHC's interest in the bank was mainly driven by its well-established, vibrant corporate franchise, its strong capital position and strong risk management team.

Almaiman pointed out that this investment represents a core step in balancing KHC's portfolio. "KHC has a long and successful track record investing in the banking sector internationally and was attracted to this investment given its unique value proposition in this sector," observed Almaiman.

"KHC's strategy is to continue to adjust its portfolio to optimize the mix of income generating assets and growth investments," he added.-

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