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Kingdom Holding to invest Careem proceeds in Europe, Saudi

2019-03-31 10:37:09 GMT (Economies.com)
Kingdom Holding to invest Careem proceeds in Europe, Saudi
 

Kingdom Holding Company (KHC) will put the proceeds from the sale of its stake in ride-hailing startup Careem towards $600 million in investments in the kingdom and Europe, its chief executive told Reuters on Friday.

 

KHC, which is 95% owned by billionaire Price Alwaleed bin Talal, sold its stake in Careem this week for SAR1.25 billion ($333 million). It will receive SAR565 million in cash, plus convertible bonds in Uber Technologies worth SAR685 million.

 

“We have five companies on the table that are being discussed, deliberated. Hopefully we will be able to come to a conclusion on where to invest within the next eight weeks,” Talal Ibrahim Al Maiman said in a phone interview.

 

Some of the companies are in Saudi Arabia and some are in Europe, he said. “We’re talking about $600m or so.”

 

“We will not deploy all the cash in one go, but this is the first tranche,” he added. “It’s a combination of debt and equity.”

 

Kingdom’s investments will be directed 70% into income-generating dividend-distributing investments and 30 % into technology and potential growth companies, he said.

 

Kingdom was among the first investors in Careem, the Middle East rival of Uber, which acquired it this week in a $3.1 billion deal ahead of a hotly anticipated initial public offering.

 
 
 
  Symbol Last Change Chg.%
1.1012
-0.0063
0.5693%
1.2418
-0.0065
0.5183%
17.862
0.411
2.355%
61.973
7.080
12.897%
69.02
8.80
14.61%
1499.605
10.625
0.714%
 
 
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