RIYADH: Saudi Arabia’s Public Investment Fund and Kingdom Holding Co. signed a binding share sale and purchase agreement for KHC to acquire 70 percent of the share capital of Al-Hilal Club Co. on Thursday.
The agreement is based on an enterprise value of SR1.4 billion ($373 million) for the total share capital of Al-Hilal.
The sale aligns with PIF’s strategy to maximize returns and redeploy capital within the domestic economy, the fund said.
This strategy supports PIF’s wider efforts to drive the development and diversification of Saudi Arabia.
PIF is unlocking opportunities to make a transformative impact in the Saudi sports sector and deliver positive, long-term results, it added.
The fund has been Al-Hilal’s major shareholder since July 2023, under the Saudi Sports Clubs investments and privatization project, accelerating the club’s progress and increasing the sports sector’s contribution to Saudi GDP.
The acquisition reinforces KHC’s leadership in identifying high-value opportunities and creating long-term impact for shareholders and the national economy, PIF said.
KHC will support Al-Hilal Club Co. to further focus on enhancing its commercial performance, expand its international partnerships, and continue to develop world-class sports infrastructure.
Prince Alwaleed Bin Talal, chairman of KHC, said: “Al-Hilal is a national symbol and a source of pride for the Saudi people.
“This acquisition expresses our deep belief in the power of sports as a unifying force and a catalyst for national development.
“By applying our global investment standards and cultivating strategic partnerships, we will unlock Al-Hilal’s full potential while preserving its history and identity.”
Yazeed A. Al-Humied, deputy governor and head of Middle East and North Africa investments at PIF, said: “PIF has proudly helped drive the efforts to transform Saudi Arabia’s sports sector and increase its value proposition for investors while creating lasting results at every level, from players and fans to local communities.
“PIF has set ambitious goals for the clubs, enabling them to become successful commercially and professionally and achieve long-term financial sustainability. Today’s announcement aligns with PIF’s strategy to maximize returns and redeploy capital within the domestic economy,” he added.
