Saudi wealth fund strengthens US holdings with stakes in Citi, Boeing and Facebook

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DUBAI / BENGALURU (Reuters) – The Saudi Arabian sovereign wealth fund has bought minority stakes in large American companies, including Boeing (TO PROHIBIT), Facebook (FB.O) and Citigroup (C.N), showed a regulatory record, which gives it a portfolio of nearly $ 10 billion of US-listed stocks.

FILE PHOTO – General view of the city of Riyadh, after the Saudi government relaxed the curfew, following the epidemic of coronavirus disease (COVID-19), in Riyadh, Saudi Arabia, on May 7, 2020. REUTERS / Ahmed Yosri

The $ 300 billion Public Investment Fund (PIF) bought minority stakes in companies around the world, taking advantage of a weak market following the coronavirus epidemic.

The PIF revealed stakes worth $ 713.7 million in Boeing, APPROXIMATELY $ 522 million in Citigroup, $ 522 million in Facebook, $ 495.8 million in Disney (DIS.N) and $ 487.6 million in Bank of America (BAC.N), showed on Friday the filing of the US Securities and Exchange Commission (SEC) bit.ly/3e2A01B.

PIF has a nearly $ 514 million stake in Marriott (TUE) and a small farm in Berkshire Hathaway (BRKa.N), depending on the file. The PIF also revealed a $ 827.7 million stake in the oil company BP (BP.L), whose American certificates of deposit (ADR) are registered in the United States.

“Saudi sovereign wealth fund did its shopping in the first quarter,” tweeted Ali Al-Salim, co-founder of Dubai-based consultancy Arkan Partners, adding that he now owns about $ 10 billion in listed shares. in the United States, against 2 billion at the start. of the year.

The FIP strategy has two components; build an international investment portfolio and invest locally in projects that will help reduce Saudi Arabia’s dependence on oil.

“PIF is a patient investor with a long-term horizon. As such, we are actively looking for strategic opportunities in Saudi Arabia and around the world that have strong potential to generate significant long-term returns while further benefiting the Saudi people and stimulating the country’s economic growth, “said the sovereign wealth fund in a press release.

“These opportunities include sectors and companies that are well positioned to stimulate economies and lead the sectors into the future.

ENERGY GIANTS

The FIP has separately funded nearly half of the $ 100 billion Vision Fund from Japanese investor SoftBank, which has been hit by technology betting losses.

Last month, PFI director Yasir al-Rumayyan said he was studying investment opportunities in areas such as aviation, oil and gas and entertainment, adding that there would be a lot investment potential once the coronavirus crisis has passed.

The PIF revealed an 8.2% stake in Carnival Corp, a coronavirus (CCL.N) in April, boosting cruise ship shares by almost 30%.

The Saudi fund bought stakes in Royal Dutch Shell (RDSa.L), Total (TOTF.PA), Eni (ENI.MI) and Equinor (EQNR.OL) Earlier this year, a source close to the transactions told Reuters on April 9.

The SEC filing on Friday showed it has a $ 483.6 million stake in Shell, a $ 222.3 million stake in Total and a $ 481 million stake in Suncor Energy (SU.TO).

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A previous filing in Norway had shown that the PIF had a 0.3% stake in the oil and gas company Equinor.

PIF already has a $ 2 billion stake in Uber Technologies (UBER.N) and the electric car company Lucid Motors. It previously held a small stake in the electric manufacturer Tesla (TSLA.O), but the last deposit showed no exposure.

(This story has been refiled to correct the typo in paragraph 11)

Saeed Azhar and Kanishka Singh reports; Editing by Pravin Char

Our standards:Principles of the Thomson Reuters Trust.

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