Khaberni - The Public Investment Fund and the Saudi Kingdom Holding Company signed today a binding share sale and purchase agreement, by which Kingdom Holding Company acquires 70% of the total capital of Al Hilal Club (Al Hilal), one of the leading football clubs in Saudi Arabia and Asia, based on a total facility value of 1.4 billion Saudi Riyals for the entire capital of Al Hilal Club, for 840 million.
The deal aligns with the strategy of the Public Investment Fund, aiming to maximize returns and recycle capital in the local economy. This strategy supports the Fund's efforts to promote sustainable development and diversify the local economy. The Fund's investments contribute to the launch of opportunities that bring transformation in the sports sector, supporting its growth and achieving positive and sustainable outcomes.
Since July 2023, the Public Investment Fund has been the primary shareholder in Al Hilal Club within the framework of the investment and privatization project for sports clubs; aiming to accelerate the development of clubs and increase the sports sector's contribution to Saudi Arabia's GDP.
During this period, the Public Investment Fund led the transformation journey in Al Hilal Club, alongside the club's executive team, and it has overseen a broad development process in governance frameworks, infrastructure, facilities, and operational performance of the club. These efforts have been reflected through the growth of revenues and commercial value of the club, supported by sponsorships, product sales, and match revenues. The Fund looks forward to continuing to support the growth journey of Al Hilal Club, as a continuing owner of a share in it.
The acquisition reflects Kingdom Holding Company's ability to identify promising opportunities and create sustainable value for shareholders and the national economy. It aligns with the company's strategy to diversify investments in vital sectors with significant economic and social impact. Under this deal, Kingdom Holding Company will support Al Hilal Club in enhancing its commercial performance and expanding its international partnerships, and continue developing sports infrastructure to global standards.
Prince Alwaleed bin Talal, Chairman of Kingdom Holding Company, said: «Al Hilal Club represents a national symbol and a source of pride and prestige, and our acquisition reflects our deep belief in the role of sports as a developmental force for the economy and society. It will provide a unique platform to apply our global investment standards and build strategic partnerships that will unlock the commercial and sports potential of Al Hilal Club while preserving its esteemed legacy and identity.»
His Excellency Yazid bin Abdulrahman Al Humaid, Deputy Governor and Head of General Administration for Investments in the Middle East and North Africa at the Public Investment Fund, said: «The Public Investment Fund is proud to contribute to the transformation efforts in the sports sector, increasing its attractiveness to investors and achieving sustainable results at all levels, including for players, fans, and the local community. The Fund has set ambitious goals for the future of the clubs, enabling them to become successful entities both sports-wise and commercially and achieve long-term financial sustainability. With today's announcement, Al Hilal Club begins a new chapter, which also aligns with the Fund's strategy to maximize returns and recycle capital in the local economy.»
The transaction is expected to be completed after fulfilling the conditions and obtaining the required regulatory approvals according to the terms and conditions of the agreement.
