The Saudi sovereign wealth fund controls MBC for $2 billion

Al Sustainability Holding Company will sell its entire share in the group company “MBC” (MBC) to Public Investment Fund Saudi Arabia, according to a publication on the Saudi Tadawul.

“MBC” indicated today, Sunday, that it received a notification from the Stability Company – which is owned by the Saudi Ministry of Finance – regarding the inclusion of a binding sale and purchase agreement for its entire share in the ‘ to sell the media group, amounting to 179.5 million shares, representing 54% of the company’s total capital, to the fund through a special Contract, with a total value of 7.4 billion rupees (about two billion dollars) for sale shares, i.e. a price equal to 41.6 Saudi riyals per share, which is the closing price for the week’s trading. The past.

The MBC publication, which noted that the conclusion of the agreement is subject to approval by the relevant authorities, did not reveal how they will pay the value of the contract or its financing methods.

MBC shares jumped about 10% to 45.75 rupees in early trading today amid news of the acquisition deal. Its price has risen more than 80% since it was listed on January 8.

MBC Group‘s annual profits grew by 44.8% at the end of last year, reaching 69 million rubles, exceeding the expectations of analysts found by Bloomberg who unanimously agreed to a loss of value 38.9 million rubles to register. MBC reported at the time that the reduction in the net loss of its video-on-demand platform “Shahid” by about 110 million pounds over the previous year contributed to the growth in profits.

Last December, MBC offered 33.25 million shares, representing 10% of the company’s capital, in an initial subscription on the Saudi financial market, at a price of 25 rupees per share.

Ministry Contracts and Funds

The MBC agreement is the second between the Ministry of Finance and the Public Investment Fund in less than two months, as in September they finalized an agreement to pay the rest of the loan to the Ministry with Emaar Company Economic City to move, coming to an end. approximately 2.9 billion pounds, to the Fund. Previously the latter in September 2021 received a 25% share in Emaar the Economic City, after transferring part of the loan received by the company from the Ministry of Finance worth 2.8 billion pounds to the fund in exchange for shares to issue new ones in the company.

Bloomberg reported in February that the Saudi sovereign fund is trying to acquire a 36% share of all or part of the Ministry of Finance in the Binladin Group. But in July, the ministry announced that it plans to support the kingdom’s largest construction group through a set of measures that include giving it a loan and considering increasing the government’s interest in it. . Not to mention the possibility of transferring ownership of the share to the Fund at a later date.