News Corporation acquires a stake in Rotana Group
|
|
News Corporation acquires a stake in Rotana Group
|
Category: Worldwide - Industry economy -
Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2010-02-24
Rotana Group, chaired by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, today announced that Newscorp has reached an agreement to buy a 9.09 percent stake in Rotana Group, the Middle East media group. Under the terms of the agreement, News Corporation will acquire newly-issued shares in Rotana for $70 million. Newscorp has an option to increase its stake to 18.18 percent in the 18 months following completion. Kingdom Holding Company (KHC) chaired by HRH Prince Alwaleed Bin Talal, the principal shareholder of the Rotana Group, is owner of approximately 7 percent of News Corporation’s Class B Common Stock.
The acquisition extends News Corporation’s presence in fast-growing Middle East markets in partnership with one of the region’s strongest media companies. Rotana, which is owned by HRH Prince Al Waleed Bin Talal, operates one of the largest TV networks and ad sales operations in the region and owns the largest Arabic film library. Additionally, it has built the leading record label in the Middle East, managing many of the most popular artists in the region and controlling the biggest Arabic music catalogue. Rotana also operates an expanding radio network and a wide array of digital services.
Prince Alwaleed Bin Talal said: “We are delighted to have this partnership with News Corporation. As one of the world’s most global media companies, it has an unrivalled record in developing businesses at scale around the world. This investment will strengthen our existing relationship, building Rotana’s presence across the region and expanding its reach to the Arab Diaspora around the world.”
James Murdoch, Chairman and Chief Executive, Europe and Asia, News Corporation, said: “A stake in Rotana expands our presence in a region with a young and growing population where GDP growth is set to outstrip that of more developed economies in the years ahead. Rotana is a leading player in the Middle East and we look forward to working together.”
News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) had total assets as of December 31, 2009 of approximately US$56 billion and total annual revenues of approximately US$30 billion. News Corporation is a diversified global media company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; integrated marketing services; newspapers and information services; book publishing; and other. The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and Latin America.
|
|
