PIF gains control of MBC in a SAR 7.5 bn play

PIF closes multi-bn MBC buyout: The Public Investment Fund (PIF) completed its SAR 7.5bn acquisition of a 54% stake in Tadawul-listed broadcaster MBC Group, according to a joint statement (pdf). The acquisition, first announced last year, received all the necessary regulatory approvals, handing the sovereign wealth fund majority control of the region’s largest media group.

REFRESHER- PIF inked a binding agreement with Istedamah Holding in November of last year to buy up its entire stake in MBC at SAR 41.60 per share in a private transaction. The fund’s shares will remain on lockup for a period of six months.

Valuation swing: The purchase price came at a discount to MBC’s trading level at the time of signing last November (SAR 45.75), but now equates to a premium with the stock last closing at SAR 29.30, as the group grapples with what appears to be a stretched balance sheet.

The move fits into PIF’s broader pivot toward domestic investments. The fund has been trimming overseas equity exposure, while ramping up local and strategic plays. Earlier this month, it inked an MoU with Macquarie Asset Management to co-invest in local infrastructure, digital, and energy transition projects, part of its push to anchor diversification and draw in foreign investments.

Market reax: MBC’s stock gained nearly 10% to close at SAR 32.20 on the back of the news.