Monday, 11 January 2010 at 16:04, Reuters, Riyadh
Saudi billionaire Prince Alwaleed bin Talal, head of Kingdom Holding and shareholder in Citigroup , said the US bank had put the worst behind it and was now on the right path.
Alwaleed said last week that Kingdom would slash its capital by almost half while agreeing to transfer free-of-charge 180 million Citi shares -which he valued at $3.31 each -from his own pocket on to Kingdom's balance sheet.
Alwaleed, one of the world's wealthiest individuals, said that the worst was now behind Citigroup, that global markets were close to the end of the crisis, and that he expected positive results at the US bank in 2011.
The global financial crisis and economic slowdown have had a severe impact on the profitability of Kingdom Holding, which derives the bulk of its revenues from shareholdings' dividends and its hotel business.
The firm's investment in Citi is worth some $4.3bn, based on Citi's closing price on Friday. Kingdom also held investments in real estate, property and equipment and intangible assets which it estimated at $7.1bn by end-September.
Alwaleed said the recent capital decrease at Kingdom, in which he holds a 95 percent stake, would cancel all accumulated losses at the diversified investment firm, and that results for the last quarter and full-year 2009 would be positive.
Your comments