(Bloomberg) --
Saudi Arabia’s sovereign wealth fund is seeking to build $412 million stake in a local travel and tourism firm as part of efforts to diversify its investments.
The Public Investment Fund signed a pact to acquire a 30% stake in Almosafer Travel & Tourism Co., a unit of Riyadh-listed Seera Group Holding, according to a statement. The investment of 1.55 billion riyals ($412 million) includes a 386 million-riyal earn-out amount.
Chaired by Crown Prince Mohammed bin Salman, the $620 billion PIF is plowing deeper into public markets as it pursues the goal of increasing its assets to about $1 trillion by 2025. The wealth fund is boosting its investments in equities as Saudi Arabia’s income from oil almost doubled in the second quarter.
The fund bought a $1.5 billion stake in the investment company of billionaire Prince Alwaleed Bin Talal in May.
More from statement:
- The earn-out amount will be conditional on Almosafer achieving certain pre-agreed KPIs in 2023 and 2024
- Seera’s destination management company, Discover Saudi, and its Hajj & Umrah B2B operator, Mawasim, will now fall under the umbrella of Almosafer
- Almosafer aims to use the investment to scale up its tourism operations
The shares of Seera rose as much as 3.5% in Riyadh on Tuesday.
Read more:
- Saudi Wealth Fund Buys $7 Billion US Stocks Amid Recession Fears
- Saudi Wealth Fund Plans to Buy $10 Billion in Stocks in 2022
©2022 Bloomberg L.P.
Advertisement