Saudi Arabia's Kingdom Holding said it will exchange its Fairmont Hotels stake for SR1.27 billion ($338.6 million) in a swap deal with AccorHotels also including other assets and a stake in the French hotel chain.
The investment firm owned by billionaire Prince Alwaleed bin Talal will take a 5.8 per cent stake in AccorHotels through the issuance of new shares, and will appoint one representative to the latter's board, the Saudi firm said in a bourse statement.
Its 35.3 per cent stake in Fairmont Hotels will also be exchanged for other assets which will be determined at a later date, Kingdom said.
The deal, subject to necessary regulatory approvals, aims to be completed in the second-quarter of 2016.
AccorHotels said on Wednesday it was buying the parent of the Fairmont, Raffles and Swissotel chains in a cash-and-share deal worth $2.9 billion that will also raise the US profile of Europe's largest hotel group.
The Paris-based group said it would pay for FRHI Holdings with $840 million in cash and by issuing 46.7 million new shares. Qatar Investment Authority would also get a 10.5 percent stake in AccorHotels following the share issue. - Reuters
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