Saudi billionaire Prince Alwaleed bin Talal has signed an agreement with Saudi Arabia’s powerful sovereign wealth fund to sell 16.87 percent of his investment firm Kingdom Holding Co to the fund, the company said on Sunday.
The Public Investment Fund (PIF) will buy 625 million shares at 9.09 riyals ($2.42) a share, Kingdom Holding said in a stock exchange filing, for a total of 5.68 billion riyals ($1.51 billion).
The share price for the agreement was where the stock closed on Thursday, its lowest level in a year. It rallied 8.8 percent to 9.89 riyals by 0802 GMT on Sunday.
The PIF did not immediately respond to emailed requests for comment.
The transaction will take place on Saudi Arabia’s stock exchange, Tadawul, on Sunday, the company said.
Prince Alwaleed, one of the Kingdom’s most recognized business figures, will retain a majority 78.13 percent stake.
The PIF, which manages over $600 billion in assets, is at the center of Saudi Crown Prince Mohammed bin Salman’s ambitious agenda to diversify the economy away from oil.
The investment firm said in a separate filing on Sunday thatone of its executive directors, Sarmad Zok, had resigned.
Abdulmajeed Ahmed al-Hagbani will replace him on the board, as a non-executive director. Al Hagbani is a senior director at PIF, according to LinkedIn.