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MBC Group Offloads 2.45M Al Arabia Shares in USD 111M Transaction

MBC Group Offloads 2.45M Al Arabia Shares in USD 111M Transaction

– MBC Group sold 2.45 million shares of Al Arabia, representing 4.9% of the company’s share capital, in a deal valued at 416.5 million Saudi riyals ($111 million).

– Despite the sale, MBC retains a 15.1% stake in Al Arabia and will be subject to a 180-day lock-up period for the remaining shares, starting from October 20.

– The transaction is expected to strengthen MBC’s financial position and positively impact its financial results by the end of 2024.

Middle East broadcaster MBC Group has sold 2.45 million shares in Al Arabia, valued at 416.5 million Saudi riyals ($111 million), representing 4.9% of the company’s share capital.

The shares were sold to multiple investors through negotiated deals, a move that MBC says will strengthen its financial position. Despite the sale, MBC will retain a 15.1% stake in Al Arabia as part of its investment portfolio. The remaining shares held by MBC will be subject to a 180-day lock-up period, starting from 20 October.

The total book value of MBC’s stake in Al Arabia is approximately SAR 1 billion, with the shares sold in the transaction valued at SAR 246 million. MBC expects this deal to positively impact its financial performance by the end of  2024.

Founded in 1991, MBC Group is a Middle East broadcaster, offering a diverse range of television, radio, and digital media services across the Arab world. Over the years, MBC has established itself as a major player in the region’s media landscape, delivering content in multiple genres, including entertainment, news, and sports.

One of MBC’s key investments has been in Al Arabia, an outdoor advertising company in Saudi Arabia. Al Arabia operates a vast network of advertising billboards and digital displays across the Kingdom, catering to a wide range of advertisers.

In a recent move to optimize its investment portfolio, MBC Group sold 2.45 million shares of Al Arabia, representing 4.9% of the company’s share capital.

The transaction, valued at 416.5 million Saudi riyals ($111 million), involved the sale of shares to a number of investors through negotiated deals. Despite the partial divestment, MBC retains a 15.1% stake in Al Arabia, signaling continued confidence in the company’s growth potential.

The proceeds from the sale are expected to enhance MBC’s financial position, and the remaining shares will be under a 180-day lock-up period, starting from October 20. MBC has indicated that the deal will likely have a positive impact on its financial results for the year ending December 31, 2024.

This strategic transaction reflects MBC’s ongoing efforts to strengthen its financial standing while maintaining significant investments in key sectors like outdoor advertising, which are critical to its long-term growth.

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