ALBAWABA - MBC Group, the most prominent broadcaster in the Middle East, has announced that Istedamah Holding Company, a substantial stakeholder, has completed a legally binding Share Sale and Purchase Agreement (SPA) with the Public Investment Fund (PIF) of Saudi Arabia.
In line with the agreement, Istedamah will convey its complete 54% stake, amounting to 179.55 million shares, to PIF in a private transaction evaluated at SAR 7.469 billion (approximately $1.99 billion). The acquisition, valued at SAR 41.60 per share, was officially announced in a stock exchange filing on November 1, 2024.
This acquisition concurs with PIF’s concentration on furthering the Kingdom's Vision 2030 economic transformation plan through the expansion of strategic investments in telecommunications, media, and technology sectors, Arab News reports.
PIF has so far established a significant presence in the industry through its investments in companies which include the Saudi Co. for Artificial Intelligence, Saudi Information Technology Co., and Saudi Telecom Co.
The completion of the transaction is contingent upon obtaining regulatory approvals and adhering to the procedural formalities established by the Saudi Exchange (Tadawul). Upon completion, it will be carried out as a negotiated agreement, in accordance with Tadawul's Trading and Membership Procedures.
Following the announcement, MBC’s stock price surged nearly 10%, reaching SAR 45.75 per share, according to Bloomberg.
Established in 1991, MBC Group has evolved into a significant media entity with a varied portfolio, featuring well-known TV channels like Al Arabiya and MBC Bollywood, along with the over-the-top streaming service Shahid.
