Riyadh – Mubasher: Kingdom Holding Company on Wednesday announced closing its acquisition of a 16.2% stake in Banque Saudi Fransi (BSF).

The acquisition was made at SAR 29.5 per share, registering a total consideration of SAR 5.8 billion ($1.5 billion), making KHC the largest shareholder in the Saudi-based bank, according to a statement.

“This deal signifies one of the largest non-governmental deals in Saudi Arabia and the closing of this deal has increased our investments in Saudi Arabia from 23% to 34%,” commented KHC CEO Talal Almaiman.

“KHC’s interest in [BSF] was driven by the Bank’s well-established, vibrant corporate franchise, its strong capital position and strong risk management team,” KHC said in its statement.

KHC further noted that the investment will be classified on KHC’s balance sheet as “as equity method from the date of this announcement,” noting that the financial impact from the acquisition will be seen starting the fourth quarter of 2017.

KHC said previously that it acquired the stake from France’s Credit Agricole Corporate and Investment Bank, the corporate and investment banking arm of Crédit Agricole S.A.

Following the acquisition, Credit Agricole will continue to be a “strategic investor” in BSF, supporting the Saudi bank’s growth and operation expansions.