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Kingdom Holding in Fairmont swap deal with Accor

Kingdom Holding is set to exchange its Fairmont Hotels stake for $338.6m (SAR1.27bn) in a swap deal with AccorHotels

Kingdom Holding has revealed it will exchange its Fairmont Hotels stake in a swap deal with AccorHotels [Picture credit: Arabian Business].
Kingdom Holding has revealed it will exchange its Fairmont Hotels stake in a swap deal with AccorHotels [Picture credit: Arabian Business].

Saudi Arabia's Kingdom Holding has revealed it will exchange its Fairmont Hotels stake for $338.6m (SAR1.27bn) in a swap deal with AccorHotels.

The deal will also include other assets and a stake in the French hotel chain.

The investment firm owned by Prince Alwaleed bin Talal will take a 5.8% stake in AccorHotels through the issuance of new shares, and will appoint one representative to the latter's board, according to a bourse statement. 

Its 35.3% stake in Fairmont Hotels will also be exchanged for other assets which will be determined at a later date, the Saudi firm said.

The deal, subject to necessary regulatory approvals, aims to be completed in the second-quarter of 2016.

On Wednesday, AccorHotels revealed it was buying the parent of the Fairmont, Raffles and Swissotel chains in a cash-and-share deal worth $2.9 billion that will also raise the U.S. profile of Europe's largest hotel group.

The Paris-based group said it would pay for FRHI Holdings Ltd with $840 million in cash and by issuing 46.7 million new shares.

Qatar Investment Authority would also get a 10.5 percent stake in AccorHotels following the share issue.

 

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