RIYADH, 25 May 2006 — Al-Azizia Commercial Investment Company (ACIC), chaired by Prince Alwaleed bin Talal, has offered to acquire a $2 billion strategic stake in Bank of China (BoC). “We’re pleased with this historical offer in line with Custodian of the Two Holy Mosques King Abdullah’s initiative and hope it’s one of many to come,” Prince Alwaleed said yesterday.
The prince and an elite group of Saudi investors signed an agreement for a strategic offer for $2 billion in the Bank of China. The Saudi group of investors from prominent companies includes Ma’an ibn Abdulwahid Al Sanie, chairman of Saad Group, Muhaidib Group, Olayan Saudi Investment Company, Bahamdan Holding Group and Amwal Al Khaleej Commercial Investment Company Ltd.
“China is among the top five leading global economies,” said Prince Alwaleed. “We’re pleased with this historical offer in line with King Abdullah’s initiative and hope it’s one of many to come.”
The $2 billion offer represents a 2.7 percent stake in BOC common equity. “This historical offer is the first of its kind in the second largest state owned bank in China and one of the largest banks in Asia,” said ACIC CEO Ahmed Halawani. “It came in line with the royal initiative to develop and strengthen commercial and business relations with China, which was the major highlight of King Abdullah’s visit to China and the visit of Chinese President Hu Jintao to the Kingdom.”
Halawani also said that the acquisition reaffirms the consortium members’ belief in the importance of diversifying geographical investments, especially in a country like China that has an economy reflecting sustainable growth and visibility. The consortium members also believe that the financial services in general and BoC as a flagship among Chinese banks in particular, form the main foundation of the Chinese economy.
Prince Alwaleed met with the Chinese president during his two-day visit to the Kingdom in April. The two met at the Conference Palace in Riyadh. During the meeting the two discussed social and economic issues, and the bilateral relationship between their respective countries. Also on the agenda of discussions between the Chinese president and the prince were the prince’s investments in China that include seven Four Seasons (FS) hotels and Citigroup in which the prince owns the largest sake and is currently the number one company, according to Forbes.
The seven FS hotels are owned through entities controlled by the prince and his family. There are currently three operational luxury hotels, which include the FS Shabu Shabu in the heart of Taiwan, the FS Hong Kong and the Four Seasons Shanghai. In addition, there are four more luxury hotels under development in China — FS Macau (Special Administration Region of China), FS Beijing, FS Shanghai and FS Taiwan.