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Middle East broadcaster MBC Group has sold 2.45 million shares of Al Arabia in a deal valued at 416.5 million Saudi riyals ($111 million), representing 4.9% of the Saudi outdoor advertising company’s share capital.
MBC said the shares were sold to a “number of investors” through negotiated deals, which will strengthen the company’s financial position.
Following the transaction, MBC will continue to retain a 15.1% stake in Al Arabia as an investment in an associated company. The remaining shares held will be subject to a 180-day contractual lock-up undertaking starting from the transaction execution date of 20 October.
The book value of MBC’s entire stake in Al Arabia is approximately SAR 1 billion, and the book value of the shares sold in the transaction is around SAR 246 million.
MBC said the transaction is expected to have a positive impact on its financials for the year ending 31 December 2024.
(Writing by Bindu Rai, editing by Daniel Luiz)
