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
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.