Prince Alwaleed bin Talal Al Saud, the Saudi investor, revealed yesterday that he plans to shore-up the balance sheet of his investment vehicle by “donating” Sr2.24bn ($597m) of shares in Citigroup into it.
沙特王子阿尔瓦利德•本•塔拉尔(Prince Alwaleed Bin Talal)昨日宣布，计划把价值22.4亿里亚尔（合5.97亿美元）的花旗集团(Citigroup)股份，“捐赠”给他的投资集团，以增强该集团的资产负债表。
Prince Alwaleed said the initiative would help lead Kingdom Holding, which floated 5 per cent of its shares on the Saudi stock exchange in 2007, to profitability and enable it to distribute dividends to shareholders.
“These measures will ensure the continuous development of Kingdom Holding and help it withstand the negative repercussions of the global economic crisis,” he said in a statement.
Prince Alwaleed said Kingdom would “continue its strategic local and international investment plans of the past 30 years”.
Kingdom added that an extraordinary general meeting would be called to approve a reduction of the company's share capital from SR63bn to SR37.5bn. The company's shares will be consolidated, with every 17 shares reduced to 10.
Kingdom's share price collapsed from SR13 a share to a nadir of SR3.65 in March last year and after a brief recovery it has stagnated. It ended yesterday at SR4.7.
The company has been hit by a fall in the value of some of its holdings, including Citigroup. On its website, Kingdom said it held a stake worth more than $9.2bn as of March 30 2007.
However, Citigroup shares have fallen sharply amid the credit crisis, falling 87.6 per cent in the past two years to $3.50 from $28.2 a share.
Hisham Abu Jamee, chief investment officer at Bakheet Investment Group, says the injection of Citi shares and share consolidation would almost double the holding company's book value per share from SR3.5.
Bakheet投资集团首席投资官希沙姆•阿布•杰米(Hisham Abu Jamee)表示，注入花旗股份和合并股份，将使该控股公司的每股账面价值从3.5里亚尔提高近一倍。
While Kingdom forms the lion's share of Prince Alwaleed's wealth, he also has sizable personal investments in regional and global companies, as well as a large real estate portfolio and a personal A380 “superjumbo”.