Saudi Arabia’s sovereign wealth fund has bought a $1.5 billion stake in the investment company of billionaire Prince Alwaleed Bin Talal, who previously reached an undisclosed deal with the country’s government after being detained and accused of corruption.
The Public Investment Fund acquired 16.9% of Kingdom Holding Co. from Prince Alwaleed for 9.09 riyals a share, the closing price on the last trading day before the transaction was announced. Prince Alwaleed will retain a 78.1% holding, KHC said on Sunday, with the remaining 5% of the stock listed on the Saudi bourse.
The firm’s shares rose as much 9.9% in early trading in Riyadh, before paring gains to 8.9% to trade at 9.90 riyals as of 11.51 a.m.
The PIF’s investment brings Alwaleed, whose grandfather was the founder of modern Saudi Arabia, closer to the Saudi government after years of operating independently. The wealth fund is chaired by Crown Prince Mohammed bin Salman, the kingdom’s de factor ruler, and is a key part of his plan to transform the oil dependent economy by investing in other industries.
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