Middle Eastern broadcaster MBC Group has successfully sold 2.45 million shares of Al Arabia for a total of 416.5 million Saudi riyals (approximately $111 million), which accounts for 4.9% of the outdoor advertising company’s share capital.
The shares were sold to various investors through negotiated deals, a move that MBC Group asserts will bolster its financial position. Following this transaction, MBC will maintain a 15.1% ownership stake in Al Arabia, treating it as an investment in an associated company. The remaining shares held by MBC will be subject to a contractual lock-up period of 180 days, starting from the execution date of the transaction on October 20.
The total book value of MBC’s stake in Al Arabia is estimated at SAR 1 billion, with the book value of the shares sold in this transaction being approximately SAR 246 million. MBC Group anticipates that this deal will have a positive effect on its financial performance for the fiscal year ending December 31, 2024.
