Seera Slumps After Saudi PIF Scraps Plans to Buy Stake in Unit - Bloomberg
Shares of the Riyadh-listed Seera Group Holding dropped nearly 10% after the firm said it failed to reach a deal with Saudi Arabia’s wealth fund to acquire a stake in one of its units.
The Public Investment Fund and Seera terminated an initial pact that would have seen the fund acquire a 30% in Almosafer Travel & Tourism Co. “due to the inability to reach an agreement between the parties,” according to a stock exchange filing.
Seera Group slumped as much as 9.9% on Monday, the most in nearly four years, after gaining almost 13% in February.
The PIF signed a pact to acquire a 30% stake in Almosafer in 2022. The investment of 1.55 billion riyals ($412 million) included a 386 million riyal earn-out amount.
Seera said Almosafer has achieved a net booking value of 5.7 billion riyals and is set to exceed 10 billion riyals by 2025. While it didn’t mention the travel agency, Seera said it plans to list subsidiaries at the appropriate time.
The wealth fund, a key part of Crown Prince Mohammed bin Salman’s efforts to diversify the Saudi economy from oil, aims to invest hundreds of billions of dollars in the coming years on everything from electric vehicles to semiconductors, tourism resorts and sports.
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