Saudi billionaire Prince Alwaleed bin Talal, chairman and founder of Tadawul-listed Kingdom Holding Co. (KHC), was among 11 princes and several other officials arrested in Saudi Arabia this week, as part of an anti-corruption crackdown led by Crown Prince Mohammed bin Salman.
One of the world’s richest people, Prince Alwaleed is known for several major investments in top global companies, including Apple, Twitter, and Time Warner. Investments by KHC – in which the prince owns a 95 percent stake – span a wide range of industries from financial services to media and entertainment.
Argaam takes a look at some of Prince Alwaleed and Kingdom Holding’s international and domestic investments in various sectors.
Hospitality
KHC has fully acquired, or holds stakes in, many of the world’s top hotels, including The Plaza in New York, the Savoy in London, and the Four Seasons George V in Paris.
The company is also the sole owner of Dubai-headquartered Kingdom Hotel Investments (KHI), a hotel and resort acquisition and development company focusing on markets in the Middle East, Asia, and Africa.
In addition, KHC has investments in several global hotel management firms: it owns 45 percent of Four Seasons Hotels and Resorts; 33.3 percent of Mövenpick Hotels & Resorts; and 5.8 percent of France’s AccorHotels, acquired last year in a deal worth $3.2 billion.
In August this year, Prince Alwaleed said he plans to invest about $800 million (SAR 3 billion) in hotel projects across Egypt, with plans to expand the Four Seasons hotel on the Red Sea to become the world’s largest resort. He also agreed to invest in two new hotels in El Alamein in the north and at Madinaty in Cairo, in cooperation with Talaat Mostafa Group.
Banking and finance
Among KHC’s key investments in the financial services sector is a stake in Citigroup, bought in 1991 when the bank’s predecessor Citicorp was experiencing financial difficulties, according to KHC’s official website.
“KHC was able to acquire a significant amount of Citicorp shares at a valuable discount to the market price,” the company said.
In Saudi Arabia, KHC acquired in September a 16.2 percent stake (195.27 million shares) in Banque Saudi Fransi from Credit Agricole Corporate & Investment Bank. The deal, valued at SAR 5.76 billion, is expected to be wrapped up during H2 2017, pending regulatory approvals.
Technology
Prince Alwaleed’s portfolio includes several investments in major tech companies, both overseas and in the region.
The Saudi prince currently owns 4.9 percent of Twitter, according to a regulatory filing by the social media platform in February this year. He also owns 6.23 million shares, or 5 percent, of Apple bought in 1997 for $115.4 million.
In 2015, KHC along with partners invested SAR 928.8 million ($247.7 million) to acquire a 5.3 percent stake in the American transportation network Lyft.
Within the GCC, the company recently acquired a 7.11 percent stake in Dubai-based ride-hailing app Careem, known as Uber’s main rival in the Middle East. The deal was valued at $62 million.
Real estate and development
KHC holds a 33.35 percent stake in Jeddah Economic Co., which is developing the Kingdom City in Jeddah. The project that will feature the over 1,000-meter Kingdom Tower with approximately 5.3 million square meters of new urban development.
In addition, KHC has a substantial investment in Trade Centre Company Ltd, sole owner of the Kingdom Centre mixed-use development in Riyadh.
The company also has a stake in Real Estate Investment Company (REIC), sole owner of Kingdom City in the Saudi capital.
Media and entertainment
In the media and entertainment sector, KHC has a stake in US-based Time Warner, resulting from the purchase of a 5 percent interest in Internet company Netscape in 1997 for $145 million. Netscape was subsequently sold to AOL, which then merged with Time Warner.
Another company Prince Alwaleed has invested in is 21rst Century Fox. As of Dec. 31, 2015, he held 39.7 million shares (4.98 percent stake) in Rupert Murdoch’s media and entertainment company.
The Saudi billionaire also owns Arab media conglomerate Rotana, in which 21rst Century Fox also holds a nearly 19 percent stake. According to the prince’s official website, the combined value of his and the American media company’s stake in Rotana is $1.1 billion.
Others
In addition to the above, KHC also holds a 34.1 percent stake in Saudi budget carrier flynas, as well as an interest in Medical Services Projects Company, which owns the Kingdom Hospital in Riyadh.
Other investments by the company include a 6.23 percent stake in Saudi petrochemical producer Tasnee, in addition to a stake in the Kingdom’s largest food producer Savola.
Write to Jerusha Sequeira at jerusha.s@argaamnews.com
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