The Saudi government’s stake in construction conglomerate Binladin Group will reportedly more than double after shareholders approved a debt conversion deal.
Following an extraordinary general meeting held on Sunday, the finance ministry’s stake will increase to 86 percent from 36 percent, Asharq News reported.
State-backed Al Istedamah Holding owns the stake. Binladin Group is a private company owned by the Bin Ladin family since its founding in the 1930s.
The new ownership structure is expected to strengthen Binladin International’s financials and support its expansion plans.
The finance ministry launched a support programme in mid-2024, providing the company with loans to repay bank debt.
Binladin’s restructuring aims to protect thousands of jobs and prevent a potential ripple effect on the banking sector, the report said.
Further reading:
- Finance ministry to help Binladin Group pay off debts
- Slowdown looms for Saudi construction as PIF cuts contracts
- Saudi Arabia awarded deals worth $9bn in four months
The construction company has worked on several major infrastructure projects and holy sites in Mecca and Medina.
In April 2020, Bloomberg reported that the company was looking to restructure an estimated $15 billion in debt.
Binladin fell out of favour after a crane collapsed in Mecca during the Hajj season in 2015, killing 118 people.
US-based investment bank Houlihan Lokey is advising the group on its restructuring.
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