Home / Press & Media / Investor News / In an Unprecedented Move, Prince Alwaleed Grants 180 million from his Citigroup Shares to Kingdom Holding Shareholders at no Cost, With Current Value of SR2.24 billion

In an Unprecedented Move, Prince Alwaleed Grants 180 million from his Citigroup Shares to Kingdom Holding Shareholders at no Cost, With Current Value of SR2.24 billion

January 5, 2010

Kingdom Holding Company chaired by HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud announced that Prince Alwaleed has transferred ownership of 180 million from his own private Citigroup shares, at no cost, at a value of SR2.24 billion. The immediate financial benefit to the Kingdom shareholders at the time of HRH’s contribution is SR2.24 billion. Furthermore, the Company will realize an additional benefit of SR675 million for every US$ 1 increase for the share price of Citigroup.

The Company also announced that will call for an Extraordinary General Meeting of its shareholders to approve the reduction of the Company’s capital from SR63 billion to SR37.5 billion (a share for every 1.7 share).

The initiative made by Prince Alwaleed bin Talal and the decision made by Kingdom Holding Company will lead the Company to profitability and enable KHC to distribute dividends to the Company’s shareholders once approved by KHC’s Board of Directors. Moreover, this move will allow Kingdom Holding to enhance its position and increase future borrowing capacity.

Prince Alwaleed commented: “I personally re-affirm my full and continuous support to Kingdom Holding Company and my initiative to transfer part of my own Citigroup shares is an example of that. We are also confident that these measures will ensure the continuous development of KHC and helps it to withstand the negative repercussions of the global economic crisis.”

Prince Alwaleed added: “Kingdom Holding will continue its strategic local and international investment plans of the past 30 years.”

KHC’s portfolio has its main interests in local and international investments that include landmark hotel properties, hotel management companies, real estate, financial services, technology, media, retail, agriculture, manufacturing and aviation. KHC’s local investments include, Saudi Research and Marketing Group (SRMG), National Air Services (NAS), Kingdom Hospital, Consulting Clinics, Kingdom City, Kingdom Centre, Kingdom Schools, SAKS Fifth Avenue, Four Seasons Hotel Riyadh, SAVOLA and TASNEE (National Industrialization Company).

Moreover, Kingdom Holding Company will continue to pursue the development of its two mega real estate projects in Kingdom City Riyadh and Kingdom City Jeddah.

Kingdom City Riyadh is a unique city within a city, located on the Dammam highway North East of Riyadh on an area of 16.8 million square meters. The project will consist of residential, commercial, offices and retail facilities. The city will also include a sports club, leisure, horse riding and education facilities, and open parks that meet international standards of quality and that are environmentally friendly.

Kingdom Tower Jeddah, the world’s tallest tower exceeding 1000 m in height, will be the centerpiece of Kingdom City Jeddah, the largest, most comprehensive real estate development to be built on the Red sea coast of the Kingdom of Saudi Arabia. The project will include offices, villas, apartments, hotels, malls, marina, recreational areas, connecting bridges and much more. It is expected to become a world-leading tourist, business and residential centre and offer the best investment opportunity in the Middle East. The Plans for the two colossal projects of Kingdom City in Jeddah and Kingdom Tower in Jeddah were inaugurated at the “Towards the First World” architectural exhibition that was held in Jeddah, under the auspices of the Custodian of the Two Holy Mosques, King Abdullah.