PIF Set to Acquire Majority Stake in MBC Group for $2 Billion

Sam Barnett, MB Group CEO

Saudi Arabia’s Public Investment Fund (PIF) is poised to acquire a 54% stake in MBC Group from Istedamah Holding, representing the finance ministry, in a deal valued at $2 billion (SAR 7.5 billion). The transaction, outlined in a filing by MBC, involves the transfer of Istedamah’s entire stake of 179.6 million shares at SAR 41.60 per share, pending approvals from relevant authorities.

This development follows a busy year for MBC, which recently listed on the Saudi Exchange, raising $222 million by selling 10% of its shares through an IPO. The broadcaster has also offloaded a 4.9% share in its advertising arm, Arabian Contracting Services, for SAR 417 million, using the proceeds to pay down nearly SAR 500 million in debt owed to Istedamah Holding. In May, MBC expanded its digital footprint by acquiring nearly 14% of music streaming platform Anghami via MBC Ventures.

The PIF, at the core of Saudi Arabia's Vision 2030 agenda led by Crown Prince Mohammed bin Salman, continues to drive strategic investments that support the nation’s economic diversification goals.

Source: Kudakwashe Muzoriwa / Gulf Business