Saudi Arabia’s sovereign wealth fund – the Public Investment Fund (PIF) – has bought a $1.5 billion stake in Saudi billionaire Prince Alwaleed Bin Talal’s investment fund.
The PIF acquired a 16.9 percent stake in Kingdom Holding Co from Prince Alwaleed for 9.09 riyals a share, the closing price on the last trading day before the transaction was announced.
Prince Alwaleed will retain a 78.13 percent holding in KHC, with the remaining 5 percent of the stock listed on the Saudi bourse.
The firm’s shares rose almost 10 percent in Riyadh on Sunday to 9.99 riyals, paring their loss this year to 1.1 percent, Bloomberg reported.
The PIF’s investment brings Alwaleed, whose grandfather was the founder of modern Saudi Arabia, closer to the Saudi government after years of operating independently, Bloomberg reported.
The PIF sovereign wealth fund is chaired by the Saudi Crown Prince Mohammed bin Salman, and is a key part of his plan to transform the oil-dependent economy by investing in other industries.
Prince Alwaleed, 67, became one of the highest profile Saudi investors after taking stakes in companies such as Citigroup, Apple, and Twitter.
He has supported a number of Prince Mohammed bin Salman’s modernisation efforts, including giving women the right to drive, Bloomberg reported.
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