Kingdom Holding Company completes 70% stake acquisition in Al Hilal Club Company for SR840 million
Quick Look
- Kingdom Holding Company has completed the acquisition of a 70% stake in Al Hilal Club Company from the Public Investment Fund for SR840 million, valuing the club at SR1.2 billion.
- The transaction, finalized after regulatory approvals, makes KHC the principal shareholder while PIF retains 30%.
- The deal is part of Saudi Arabia's Vision 2030 sports privatization initiative.
AI-generated summary
Why It Matters
The acquisition is part of Saudi Arabia's Investment and Privatization Project for Sports Clubs under Vision 2030, which aims to develop the sports industry, attract investment and create financially sustainable clubs.
RIYADH — Kingdom Holding Company (KHC) has completed its acquisition of a 70% stake in Al Hilal Club Company from the Public Investment Fund (PIF) for SR840 million.
The transaction was completed on Tuesday after all regulatory approvals, no-objection requirements and corporate conditions were satisfied, KHC said in a disclosure to the Saudi Exchange.
Under the deal, KHC becomes Al Hilal's principal shareholder with a 70% stake, while PIF retains the remaining 30%.
The acquisition values 100% of Al Hilal Club Company's equity at SR1.2 billion.
KHC and PIF initially signed the share sale and purchase agreement on April 16. KHC said the full SR840 million consideration for the 70% stake has now been paid to PIF and the transaction formally completed.
Prince Alwaleed bin Talal, KHC's founder and a prominent longtime supporter of Al Hilal, is closely associated with the club and has provided financial support and incentives to the team over the years.
Al Hilal's board of directors, headed by Prince Nawaf bin Saad, welcomed KHC as the club's principal shareholder and said the acquisition opens a new chapter aimed at sustaining the club's growth and strengthening its sporting, commercial and investment capabilities.
The board also expressed its appreciation for PIF's role in supporting Al Hilal's institutional transformation, developing its operating framework and enhancing its operational and commercial capabilities since taking ownership of the club.
It said the new ownership structure would seek to expand Al Hilal's domestic and international presence while preserving the club's identity and legacy and meeting the aspirations of its supporters.
The transaction forms part of Saudi Arabia's broader Investment and Privatization Project for Sports Clubs, launched under Vision 2030 to develop the sports industry, attract investment and create financially sustainable clubs.
Al Hilal's board said the acquisition represents the beginning of a new phase in which the club will seek to maintain its sporting and institutional leadership while developing a sustainable sports and investment model capable of competing domestically and internationally.
What to Watch
AI outlook — possibilities, not facts
Al Hilal will pursue expanded domestic and international presence under KHC's ownership
Likely · Within months
KHC will focus on strengthening Al Hilal's sporting, commercial and investment capabilities
Very likely · Within months
Open Questions
- What specific commercial or investment initiatives will KHC pursue with Al Hilal?
- How will the 70-30 ownership structure affect decision-making at the club?
- Will PIF continue to provide financial support to Al Hilal despite reducing its stake?
