KHC signs SAR 840M SPA with PIF to buy 70% of Al-Hilal Club

The transaction was executed based on an enterprise value of about SAR 1.4 billion and an equity valuation of SAR 1.2 billion, representing 100% of Al Hilal Club’s equity, with the consideration for the 70% stake amounting to SAR 840 million, the company said in a statement on Tadawul.

The deal was executed based on an enterprise value of about SAR 1.4 billion and an equity valuation of SAR 1.2 billion, representing 100% of the club’s equity.

Accordingly, the consideration for the 70% stake amounts to SAR 840 million, the company said in a statement on Tadawul, adding that Kingdom Holding will finance the transaction through its internal resources.

Al Hilal Saudi Club was established in 2023, while Al Hilal football club was founded in 1957. It is the most decorated football club in Saudi Arabia and enjoys a wide fan base across the Middle East, remaining one of the region’s most influential sports brands. 

The company said the acquisition of Al Hilal Club is a strategic step aimed at expanding Kingdom Holding’s presence in Saudi Arabia’s fast-growing sports and entertainment sector, in line with Vision 2030 objectives.

It added that Al Hilal Club’s strong brand value, large fan base, and track record of regional and continental success are expected to generate attractive long-term commercial opportunities, while also supporting the development of a professionally managed sports ecosystem in the Kingdom.

The company noted that the PIF is considered a related party, as it is a major shareholder in Kingdom Holding with a 16.865% stake, and added that board member Abdulmajeed Alhagbani has an indirect interest due to his position on the company’s board and his executive role at the PIF.