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Saudi Arabia’s Kingdom Holding invests in Chinese e-commerce company 360buy Jingdong

18 Feb 2013

Saudi Arabian investment company Kingdom Holding Company (KHC) has led a consortium of investors to acquire a strategic stake in Chinese e-commerce company 360buy Jingdong for $400m.

KHC, which is chaired by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, invested $125m in the deal.

360buy Jingdong is the largest B2C direct sales e-commerce company in China. It has achieved more than 150 per cent annually compounded growth in gross merchandise volume during past several years.

Eng. Ahmed Halawani , KHC executive director, private equity and international investment, said, “This deal confirms KHC’s expertise to seek rewarding global investment opportunities, and to capitalize on them in light of their potential IRR in order to extract value for KHC shareholders.”

He added: “This deal is also in line with Kingdom Holding’s private equity investment strategy through selecting high growth companies potentially seeking to be listed in one of the international capital markets within three years. The deal also reflects international companies’ confidence in Kingdom Holding and the strategic role it plays in adding real value to their shareholders base.”

This acquisition is in line with Kingdom Holding’s investment strategy following Prince Alwaleed and Kingdom Holding’s combined investment of $300m in Twitter.

Prince Alwaleed said, “Our deal solidifies the strategic relationship between Saudi Arabia and China. The acquisition is also an extension of the initiative of the Custodian of the Two Holy Mosques to support the business alliance between Saudi Arabia and The People’s Republic of China. This was highlighted during the visit of the Chinese President Hu Jintao to Saudi Arabia.”

KHC has a presence in China via Citibank. HRH’s investment in the entertainment sector in China includes Disneyland Hong Kong and in the hotel sector via Four Seasons Hotels and Fairmont Raffles Hotel.

Founded in 1980, KHC is a publicly traded company which was listed on Tadawul, the Saudi Stock Exchange, in 2007. Its portfolio has its main interest in landmark hotel properties and hotel management companies, real estate development in Jeddah and Riyadh, financial services, technology and media, manufacturing, aviation and agriculture.

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