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KHC in $375m bid for Kingdom Hotels stake

Dubai, March 15, 2010

Kingdom Holding Company (KHC), the investment firm of Saudi Prince Alwaleed bin Talal, will make a cash offer for the remaining shares in Kingdom Hotel Investments  in a deal worth $375 million, KHI said on Monday.

The offer, made by Cayman Islands-based Kingdom 5-KR-211, has received the unanimous recommendation of the Independent Committee of the directors of KHI, said a statement.

KHI is a company based in the DIFC in Dubai and its shares are listed on Nasdaq Dubai and its GDS (Global Depository Shares) on the London Stock Exchange.

The offer (for 44 per cent of the outstanding shares) will be $5 in cash for each KHI share and $5 for each KHI GDS, representing premiums of 39.7 per cent and 37.2 per cent to the average trading price for the past three months of the shares and the GDS, respectively, said the statement.

The offer values KHI at approximately $843 million. Completion of the offer is conditional on a number of standard conditions including receipt of acceptances for the offer of shares and GDS which, when added to the shares of KHC, represent 75 per cent of the shares and GDS in KHI, the statement said.

Commenting on the recommended offer, KHC chairman Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud said: 'KHI has a sound business and strong management team. The offer which Kingdom Holding Company has today announced represents a significant premium to KHI’s historic trading price and is structured to provide minority shareholders with short-term liquidity at an exit price for cash on terms we believe are highly attractive. We are delighted to have already secured the support of the Independent Committee of the board of KHI and of KHI's largest minority shareholder for our offer. We look forward to the successful completion of the transaction in due course.' –Reuters and TradeArabia News Service




Tags: Prince Alwaleed | KHC | Kingdom Hotel Investments |

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