The Public Investment Fund (PIF) acquired a 23.1% stake in Saudi Reins. (Saudi Re), after lining up regulatory approval, according to a press release. The move follows the wealth fund’s binding agreement in July to fully subscribe to Saudi Re’s SAR 427 mn capital hike, granting the PIF a stake in the Tadawul-listed firm.

ICYMI- Saudi Re said in July that it would raise its capital by 30% to SAR 1.2 bn by issuing 26.7 mn new ordinary shares (representing 30% of current capital) at a price of SAR 10 per share to be sold to the PIF at a premium of SAR 16 apiece in a SAR 427.6 mn transaction.

Use of proceeds: The fresh funds aim to strengthen Saudi Re’s financial capacity, and credit ratings and support local ins. companies in managing risks. “This investment will provide us with multiple benefits, including boosting our financial position and unlocking [potential] for expansion and growth,” said Saudi Re CEO Ahmed Al Jabr.

ADVISORS- The fund tapped GIB capital for the transaction, while Al Rajhi Capital advised Saudi Re.

IN OTHER PIF NEWS-

PIF’s sports investment arm Surj Sports Investment is reportedly in advanced talks to invest at least USD 1 bn into sports streaming service Dazn Group, Bloomberg reports, citing sources it said are familiar with the matter. An announcement might be due this month, the sources said.

REFRESHER- Negotiations between PIF and Dazn began last year, with PIF reportedly bidding to acquire a 10% stake in Dazn for USD 1 bn back in October. But the fund denied having plans to invest in Dazn.

ALSO- Surj and Dazn are reportedly planning a transaction to promote and broadcast Saudi Pro League games, the sources said.

ADVISORS– Citigroup Inc. is advising Surj, while Dazn is being advised by independent financial consultant Kacy Grine, the report reads.

Tags: