Riyadh - Mubasher: Kingdom Holding Company (KHC) announced on Tuesday that it will acquire a 16.2% stake in Banque Saudi Fransi (BSF) for total consideration of SAR 5.8 billion ($1.5 billion).

The deal will be concluded in the second half of 2017 and will make KHC the largest shareholder in BSF, KHC said in a statement.

The Saudi holding company will acquire the stake from Credit Agricole Corporate and Investment Bank, the corporate and investment arm of France’s Crédit Agricole.

Following the completion of the acquisition, the French partner will continue to be a strategic investor in BSF and support the Saudi bank’s expansions.

“Banque Saudi Fransi’s solid financial performance will have a positive impact on KHC’s financial results upon closing of the transaction”, said Mohamed Fahmy, KHC CFO.

KHC boasts a “long and successful track record” through its investments in the banking sector both locally and internationally, the CFO noted, highlighting that the BSF deal presented a “unique value proposition”.

Meanwhile, KHC CEO Talal Al Maiman explained that the BSF investment was “a core step in balancing KHC’s portfolio,” noting that his company’s strategy “is to continue to adjust its portfolio to optimise the mix of income generating assets and growth investments.”