Kingdom Hotel Investments (KHI), the company controlled by Saudi Prince Alwaleed bin Talal, said on Wednesday that it plans to buy back 4.29 percent of its shares after they declined 44 percent this year.
KHI received shareholder approval to buy back up to 7.5 million shares by Jan. 10, the company said in a statement to theDubai International Financial Exchange (DIFX) website.
Shareholders authorised the company to use retained profit to buy back shares listed on the DIFX or the global depositary receipts traded onthe London Stock Exchange, it said.
KHI's shares rose 5.8 percent to $4.50 on Nov. 7, when they were last traded on the DIFX.
Prince Alwaleed raised $398 million in KHI's February 2006 initial public offering, priced at $9.25 a share. The company's netincome for the first half of this year rose 8 percent to $20.6 million on strong growth in the Middle East and North Africa, and expansion intoAsia.
The company has holdings in 29 hotels and resorts in 20 countries, including seven under construction.
Its hotels are managed by companies such as Fairmont Hotels & Resorts and Moevenpick.For all the latest market 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 Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.