Saudi Arabia’s Public Investment Fund is set to acquire Istedamah Holding Company’s entire stake in MBC Group Company for SAR7,469 million ($1.98 billion).
According to the share sale and purchase agreement, Istedamah will sell its entire stake in the company, amounting to 179,550,000 shares, representing 54 percent of the company’s entire share capital.
The sale values each share at SAR41.60.
“The completion of the transaction is subject to a number of conditions, including obtaining the necessary approvals and non-objections that might be required from the relevant entities,” MBC Group said in a statement.
Following the completion of the transaction, PIF will own 54 percent of the company’s entire share capital.
MBC’s strong H1 results
MBC Group recorded a net income of SAR237.8 million in 1H 2024 – up a significant 359.8 percent year-on-year with a net profit margin of 10.8 percent versus 2.6 percent in 1H 2023 – on revenues of SAR1,999.7 million during the same period, a 10 percent YoY increase.
PIF’s growing portfolio
PIF’s investments in the media and technology sector range across several companies. The group has strategically invested in companies like the Saudi Company for Artificial Intelligence, aiming to drive innovation and develop cutting-edge AI solutions. The Saudi Information Technology Company, another PIF portfolio company, is focused on enhancing digital infrastructure and promoting technological advancements.
Furthermore, PIF’s investment in Elm Company, a leading provider of digital solutions and services, demonstrates its commitment to digital transformation. By supporting these companies, PIF aims to position Saudi Arabia as a regional technology hub and contribute to the global digital economy. Additionally, the fund’s investment in stc, a major telecommunications provider, strengthens the country’s digital connectivity and facilitates the growth of various industries.
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