Kingdom buys $400m stake in Chinese e-retailer
Riyadh, February 16, 2013
Kingdom Holding Company (KHC), the investment company chaired by Saudi billionaire Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, and a consortium of investors have bought a SR1.5 billion ($400 million) stake in Chinese online retail firm 360buy Jingdong.
Kingdom Holding's investment in the deal came to SR470 million, the firm said in a statement on Saturday.
This acquisition is in line with Kingdom Holding’s diversified and unique investment strategy following Prince Alwaleed and Kingdom Holding’s combined investment of $300 Million in Twitter, said a statement from KHC.
Qatari bank QInvest had advised on the key acqusition deal.
Ahmed Halawani, the executive director, Private Equity and International Investments (KHC) said, “This deal confirms KHC’s expertise to seek rewarding global investment opportunities, and to capitalize on them in light of their potential IRR in order to extract value for KHC shareholders.”
This acquisition is in line with Kingdom Holding’s private equity investment strategy through selecting high growth companies potentially seeking to be listed in one of the international capital markets within three years.
"The deal also reflects international companies’ confidence in Kingdom Holding and the strategic role it plays in adding real value to their shareholders base," he added.
In his comments, Prince Alwaleed said the acquisition deal solidifies the strategic relationship between Saudi Arabia and China and is also an extension of the initiative of the Custodian of the Two Holy Mosques to support the business alliance between the two countries
"This was highlighted during the visit of the Chinese President Hu Jintao to Saudi Arabia. We are also pleased to fortify our investment and business ties with QInvest,” he added.
Richard Liu, the founder and CEO of 360buy Jingdong lauded Kingdom Holding for its support and said he looked forward to a long lasting and constructive relationship with them.
Kingdom Holding has a presence in China via Citibank. Moreover, Alwaleed’s investment in the entertainment sector in China includes Disneyland Hong Kong and in the hotel sector via Four Seasons Hotels and Fairmont Raffles Hotel.
In April 2006, Prince Alwaleed had met the Chinese President Hu Jintao at the Royal Guest Palace in Riyadh during his official visit to Saudi Arabia.-TradeArabia News Service
More Retail & Wholesale Stories
- MAF to develop $466m super mall Muscat
- Samsung to unveil 105-inch curved UHD TV
- DDF sets new anniversary sales record
- Al-Futtaim in deal to set up giant Morocco mall
- Wifi lighbulb launched in UAE
- Seiko unveils GPS watches
- Géant opens 2nd supermarket in Abu Dhabi
- MAF malls in Dubai unveil festive décor
- Global luxury brands for Riyadh expo
- Luxury brands step up battle for travelling shoppers