(Bloomberg) – Saudi Arabia’s Sovereign Wealth Fund has bought $ 1.5 billion worth of shares in the investment company of billionaire Prince Alwaleed bin Talal, who previously reached an undisclosed deal with the country’s government over allegations of embezzlement and corruption.
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Public Investment Fund Kingdom Holding Co. acquired a 16.9% stake in Prince Alwaleed at 9.09 riyals a share, the last price on the last trading day before the announcement of the transaction. Prince Alwaleed will hold a 78.1% holding, KHC said Sunday, with the remaining 5% of the stock listed on the Saudi Stock Exchange.
Shares of the firm rose 9.9% early in Riyadh, gaining 8.9% before trading at 9.90 rials until 11.51
PIF’s investment brings Alwaleed, whose grandfather was the founder of modern Saudi Arabia, close to the Saudi government after working independently for years. The resource fund is chaired by Crown Prince Mohammed bin Salman, the state’s de facto ruler, and is a key part of a plan to transform the oil-dependent economy by investing in other industries.
Prince Alwaleed, 67, became one of the highest-profile Saudi investors after joining companies such as Citigroup and Apple. She has supported Prince Mohammed’s modernization efforts, including the right of women to drive.
His reputation on the global investment stage has faded since 2017, when he was imprisoned along with hundreds of other businessmen and officials as part of the Crown Prince’s anti-corruption campaign, although no formal charges have ever been filed. He was released after 63 days at the Ritz Carlton Hotel in Riyadh. Neither he nor the government disclosed the details of their agreement, which Alwaleed described as a “definitive agreement.”
Alwalid has made multiple deals since then. He has invested about 0 270 million in music streaming service DJ. Last year, he sold a stake in his Rotana Music label to Warner Music Group Corporation. Most recently, he raised 2.2 billion by selling shares of the Four Seasons Hotel Chain to Bill Gates’ Cascade Investment LLC.
Alwaleed is known for his long-term investments and is a fan of Warren Buffett. He once called himself Oracle, the Arabic equivalent of Omaha.
Prince also holds a partnership with Twitter Inc. and supports Elon Musk’s bid to buy the company.
KHC announced on Sunday that Sarmad Joke, who has been overseeing the hotel business for more than two decades, was stepping down as director. He will be replaced by Abdul Majeed Alhaagbani, head of PIF’s Middle East and North Africa Securities Investments.
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