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
By Reuters
Thu 10 Dec 2015 10:35 AM

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.

For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.