Arab News, Sunday, Sep 5, 2021 | Muharram 28, 1443
Saudi PIF to become largest shareholder in Emaar the Economic City after debt swap
Saudi Arabia:
Saudi Arabia’s Public
Investment Fund will own a 25 percent stake in Emaar the Economic City after the
sovereign wealth fund took over debt in the company previously held by the
Ministry of Finance that was then converted to shares.
EEC issued 283.3 million new shares with a value
of SR2.8 billion ($755.39 million) to PIF to write off most of the loan, EEC
said in a statement to the Tadawul stock exchange.
The deal will make PIF the largest shareholder in
EEC, according to Asharq. Diem Modern Real Estate Management held a 16.78
percent stake in the company before the debt conversion, which falls to 12.59
percent after the new capital is issued.
Saudi Fransi Capital acted as the financial
adviser for the transaction.
Emaar The Economic City is affiliated with Emaar
Real Estate Development Company, based in Dubai, and is working on the
development of King Abdullah Economic City in Rabigh, Saudi Arabia.