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Kingdom Holding Closes USD 1.5 Billion Deal to Acquire 16.2 % Stake in Banque Saudi Fransi

September 20, 2017

Kingdom Holding Company’s (KHC) Chief Executive Officer, Eng. Talal Almaiman announced the closing of the Company’s deal to acquire 16.2 % stake in Banque Saudi Fransi for SAR 29.5 per share, a deal with total consideration of approximately SAR 5.8bn (USD 1.5bn), positioning KHC as the largest shareholder in the bank.

 

Eng. Almaiman commented: “This deal signifies one of the largest non-governmental deals in Saudi Arabia and the closing of this deal has increased our investments in Saudi Arabia from 23% to 34%.”

KHC acquired the 16.2 percent 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.

 

KHC’s interest in the Bank was driven by the Bank’s well-established, vibrant corporate franchise, its strong capital position and strong risk management team.

The announced net profit for BSF for the first half of 2017 was                                 USD 562,288,000. This investment will be classified on KHC as equity method from the date of this announcement. The financial impact from KHC’s 16.2% share in BSF net profit will be evident from Q4 of 2017.

 

Eng. Almaiman explained that the investment in Banque Saudi Fransi 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. KHC’s strategy is to continue to adjust its portfolio to optimize the mix of income generating assets and growth investments.

 

 

About Kingdom Holding Company:

 

Founded in 1980, KHC is a publicly traded company which was listed on Tadawul (the Saudi Stock Exchange) in 2007. Founded and Chaired by HRH Prince Alwaleed Bin Talal, KHC is one of the world’s successful and diversified business organizations, highly respected in the field of investments and recognized as an elite investment player in the Arabian Gulf region, and internationally. The Company is recognized as one of the largest foreign investors in the United States. KHC’s portfolio has major interests in investment categories ranging from luxury hotels management companies, hotel real estate investments, technology, entertainment, and financial services. Among KHC’s recognizable current investments are Citigroup, NewsCorp, Twitter, JD.com, Four Seasons and Accor Hotels.

 

About Banque Saudi Fransi:

 

Banque Saudi Fransi is a full service commercial bank with a network of 86 branches in Saudi Arabia as of 2016 year end. Founded in 1977, Banque Saudi Fransi is affiliated with Credit Agricole and offers both conventional and Islamic banking services and products. The Bank operates through four segments: (i) Corporate Banking, (ii) Retail Banking, (iii) Treasury and (iv) Investment Banking and Brokerage. Banque Saudi Fransi is a leading corporate franchise with the 2nd largest market share in corporate lending in Saudi Arabia as of 2016. The Bank has approximately 900 thousands retail clients and 3,600 corporate clients serviced by approximately 3,200 employees.