In a strategic alliance between France & KHC, a consortium of France’s big companies led by the CDCIC International Capital, the International investment arm of Caisse des Depots, France’s Sovereign Wealth Fund, announced that they have approved an investment in Kingdom Holding Company. The deal constitutes the acquisition of KHC’s shares with a minimum amount of $150 million dollars, subject to increase. The number of shares and acquisition share price will be determined at a time closer to execution. The share price will be based on the trading price of the stock on the Saudi Stock Exchange (Tadawul). The investment is subject to applicable regulatory approvals under the Saudi Arabian Capital Markets Authority recently issued Rules for Qualified Foreign Financial Institutions Investment in Listed Shares. HRH Prince Alwaleed, who will be retaining his full ownership stake in KHC, welcomed this important and strategic milestone deal that is taking place pursuant to the Saudi Arabian Capital Market Authority opening to foreign investors.
In a separate deal, Kingdom Holding & CDC France’s SWF had announced a launch of $400M fund. The investment fund will be to seek attractive investment opportunities in small and medium size enterprises in the Kingdom of Saudi Arabia with the participation of large French corporates, in addition to diversifying KHC’s investment portfolio.
At their meeting on 28th June Prince Alwaleed and President François Hollande discussed political, economic and cultural matters. They also discussed the bi-lateral relations between Saudi Arabia and France, and the strong relations between HRH and France, especially KHC’s investments in France that are considered to be the largest Saudi Arabian presence in France through the ownership and management of the iconic landmark The Four Seasons Hotel George V, the management of Le Royal Monceau Hotel (Raffles), Disneyland, Paris (Euro Disney), 7 hotels in Disneyland, Paris, in addition to the management of the Grand Hotel du Cap Ferrat in the South of France, and through the presence of Citigroup. Also Prince Alwaleed’s cultural contributions through Alwaleed Bin Talal Foundation that have donated $20 million in 2005 to establish the center of Islamic Art at the Musée du Louvre.