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Thu 10 Dec 2015 10:35 AM

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Alwaleed's Kingdom Holding agrees $338m Fairmont swap deal with AccorHotels

Saudi billionaire's firm owns 35.3% stake in the French hotel chain

Alwaleed's Kingdom Holding agrees $338m Fairmont swap deal with AccorHotels

Saudi Arabia's Kingdom Holding on Thursday said it will exchange its Fairmont Hotels stake for $1.27 billion ($338.6 million) in a swap deal with AccorHotels also including other assets and a stake in the French hotel chain.

The investment firm owned by billionaire Prince Alwaleed bin Talal will take a 5.8 percent stake in AccorHotels through the issuance of new shares, and will appoint one representative to the latter's board, the Saudi firm said in a bourse statement.

Its 35.3 percent stake in Fairmont Hotels will also be exchanged for other assets which will be determined at a later date, Kingdom said.

The deal, subject to necessary regulatory approvals, aims to be completed in the second-quarter of 2016.

AccorHotels said on Wednesday it was buying the parent of the Fairmont, Raffles and Swissotel chains in a cash-and-share deal worth $2.9 billion that will also raise the U.S. profile of Europe's largest hotel group.

The Paris-based group said it would pay for FRHI Holdings Ltd with $840 million in cash and by issuing 46.7 million new shares. Qatar Investment Authority would also get a 10.5 percent stake in AccorHotels following the share issue.

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