Kingdom Holding Company (KHC), a leading investment company chaired by Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, has inked a definitive agreement to sell a 23.75 percent stake in Four Seasons Hotels and Resorts to Bill Gates’ Cascade Investment.
According to a statement from KHC, the transaction is being completed on the basis of a $10 billion enterprise value for Four Seasons and $2.21 billion in cash proceeds to KHC. Cascade will raise its existing investment to 71.25 percent in the all-cash deal by purchasing half of KHC’s existing 47.5 percent holding.
The deal is expected to be completed in January 2022, pending regulatory clearances and other standard closing conditions. KHC is expected to make a $1.57 billion profit as a result of this transaction. Following the deal, KHC stated that it remains highly dedicated to Four Seasons and looks forward to continuing to assist the company with its growth ambitions through its affiliate’s ownership of 23.75 percent in it.
Four Seasons has been a part of the Saudi group’s portfolio since 1994 when it recognized the company as a potential global leader in the luxury hotel management market. At the time, a KHC affiliate made a partial public takeover approach for a strategic minority interest in the premium hotel network.
KHC supported Four Seasons’ strategic growth ambitions by acquiring and expanding multiple international luxury hotels for the Four Seasons brand, including the flagship George V Hotel in Paris, making the venture a win-win.
Since 2007, Four Seasons has been privately held by a KHC affiliate, Cascade Investment, a private investment company that manages Bill Gates’ and Isadore Sharp’s holdings. Four Seasons has grown to become the premier luxury hospitality group, with 121 hotels and resorts and 46 residential properties in 47 countries and over 40,000 employees, having the support of its stockholders.