Saudi conglomerate holding company Kingdom Holding Company’s (KHC) key unit Kingdom Investment Company has concluded the sale of a 23.75 percent stake in Four Seasons Hotels and Resorts to an affiliate of Cascade Investment, an American private investment firm, for $2.21 billion (SR8.29 billion).
The Saudi company said the expected gain of $1.5 billion (SR5.9 billion) will be recognized in the first quarter of 2022. The transaction values Four Seasons at $10 billion.
“Cascade’s stake will increase to 71.25 percent. KHC will retain a 23.8 percent stake in Four Seasons Holding by its affiliate Kingdom Investment,” according to the statement.
Four Seasons was taken private in 2007 in a deal led by Cascade and Kingdom Holding. The new owners invested in the company’s expansion, opening properties in new markets and capitalizing on a boom in luxury travel.
Four Seasons managed 74 hotels when Cascade and Kingdom Holding took it over and now operates 121 properties, with a further 50 under development. It has also expanded its business into real estate, putting its name to luxury homes and communities, as per the company.
As per a company spokesperson, “As a result of the transaction, the KHC affiliate will continue to own a 23.8 percent stake in Four Seasons and will remain strongly committed to the company and its considerable growth opportunities through its ongoing representation on the Board of Directors, and its ownership of Four Seasons-branded luxury properties.”
“We are expecting to report a gain from the transaction of $1.5 billion. This comes following the receipt of all applicable regulatory approvals and the satisfaction of other customary closing conditions,” he further added.
UK-based investment banking company Avington Financial Limited acted as exclusive financial advisor and American-British law firm Hogan Lovells as legal advisor to Kingdom Holding Company for the deal.
