PIF acquires 54% of MBC Group for SAR 7.5B

MBC Group Co. announced that the Public Investment Fund (PIF) completed the acquisition of a 54% stake in the MENA’s leading media company for SAR 7.47 billion.  

All required paperwork was finalized by the Kingdom’s sovereign wealth fund, MBC Group said in a statement to Tadawul.

The acquisition of Istedamah Holding’s stake aligns with the fund’s strategy to further develop the domestic media and entertainment sector.

PIF expects the deal to have a positive financial impact on the company’s business. The deal forms part of PIF’s ongoing strategy to strengthen the growth of the media and entertainment industries by fostering innovation, localization, and building an integrated media production ecosystem.

The transaction is also expected to deliver benefits to shareholders, underpinned by the same strategy of innovation and industry development.

Moreover, the deal is projected to create growth opportunities in the media and entertainment sector, with a positive impact on the company’s employees.

According to Argaam data, MBC Group announced in November 2024 that Istedamah had entered into a binding share purchase agreement with PIF.

Under the agreement, Istedamah will sell its entire stake, 54% of the company’s issued capital or 179.55 million shares, to the fund through a negotiated deal valued at SAR 7.47 billion, or SAR 41.60 per share.

Separately, MBC Group said PIF has become its largest shareholder with a 54% stake, while the remaining 46% of shares were not part of the deal.

It added that PIF will hold the same rights and obligations as other shareholders under applicable laws and the company’s bylaws, with no preferential treatment.

In line with takeover regulations, PIF is barred from disposing of its acquired shares for six months without prior approval from the Capital Market Authority (CMA).

MBC Group’s board expects the transaction to have an overall positive impact on the company’s operations, shareholders, and employees, the statement said, noting that it will not have any direct financial effect on the firm.