MBC will continue to retain a 15.1% stake in Al Arabia as an investment in an associated company.
Middle East broadcaster MBC Group has sold 2.45 million shares of its outdoor advertising company Al Arabia in a deal valued at $111m (SAR416.5m), representing 4.9% of the Saudi outdoor advertising company’s share capital.
MBC said the shares were sold to a “number of investors” through negotiated deals, which will strengthen the company’s financial position.
Following the transaction, MBC will continue to retain a 15.1% stake in Al Arabia as an investment in an associated company. The remaining shares held will be subject to a 180-day contractual lock-up undertaking starting from the transaction execution date of 20 October.
The book value of MBC’s entire stake in Al Arabia is approximately SAR1bn, and the book value of the shares sold in the transaction is around SAR246m.
MBC said the transaction is expected to have a positive impact on its financials for the year ending December 31 2024.
