https://arab.news/zbqp4
- Debt owed to Saudi finance ministry to be shifted to PIF and settled with new capital
RIYADH: 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.