Kingdom Holding Co. Announces a binding agreement with Red Sea Global Company to enter into a joint venture to develop a tourist resort, to be operated by Four Seasons hotels and resorts group, on Shura Island on the west coast of the Kingdom of Saudi Arabia.
| Element List | Explanation |
|---|---|
| Announcement Detail | Kingdom Holding Company (referred to hereinafter as “KHC”) announces entering into a binding agreement with Red Sea Global Company on Monday, 08/04/1445H (corresponding to 23/10/2023G), regarding a joint venture to develop a tourist resort, to be operated by Four Seasons hotels and resorts group, on Shura Island on the west coast of the Kingdom of Saudi Arabia (referred to hereinafter as the “Project”). The Project shall include establishing a joint venture company, 50% of which shall be owned by a special purpose vehicle – currently under establishment – wholly-owned by KHC, and the remaining 50% shall be owned by a special purpose vehicle owned by Red Sea Global Company (referred to hereinafter as the “JV Company”). The Project is anticipated to be allocated an approximate budget of SAR 2.0 billion, and each of KHC and Red Sea Global Company will be investing SAR 258 million, respectively, as funding commitments via special purpose vehicles established by each party; while the remaining capital commitment will be financed by debt provided to the JV Company.
The Project does not involve any related parties. Any material developments relating to the Project shall be announced in due course. |
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