Idk what to think anymore
Prince Alwaleed Bin Talal, long a favorite in tech circles, is reportedly still under armed guard
Shares of Saudi Arabia's Kingdom Holding, an international investment company controlled by Prince Alwaleed Bin Talal, soared in January when he was freed after two months of being held captive at a Ritz Carlton in Riyadh, Saudi Arabia.
Turns out investors may have celebrated too soon.
As people following the story may recall, Prince Alwaleed was arrested in early November with hundreds of other businessmen and at least ten other princes. The roundup was described as a sweeping corruption investigation but widely seen as an effort to consolidate power by Crown Prince Mohammed bin Salman, a son and the top adviser of King Salman, who succeeded his half brother and became king of Saudi Arabia in January 2015. Indeed, the crown prince had announced the creation of a new anti-corruption committee — which he headed up — just hours before the arrests were ordered.
New reports suggest that though most of those who were arrested have now been released, they are not in control of the holdings they once were, including Prince Alwaleed. A detailed weekend report by the New York Times, for example, states that "members of the royal family, and relatives, advisers and associates of the detainees" say those who were kidnapped were coerced and physically abused in some cases, and that billions of dollars in private wealth were transferred to Crown Prince's Mohammed's control.
Two associates of Prince Alwaleed also told the Times that he continues to live under armed guard and that his time at the Ritz is "something he wants to forget."
That won't be easy, according to a separate report in the WSJ yesterday that said the Saudi government now has final say over decisions at Kingdom Holding and that, further, the prince's personal investment portfolio is also under government control.
Prince Alwaleed – who long maintained a high profile, even pledging in 2015 to give away $32 billion as part of investor Warren Buffett's famous Giving Pledge – has also reportedly agreed to step back from his informal role as a broker for foreign businesses and governments looking to invest in Saudi Arabia, says the WSJ.
Before being ushered out of view in November, the prince was considered to be one of the world’s richest men, with Kingdom Holding owning or having owned meaningful positions in satellite TV networks, as well as in News Corp. (a stake it mostly sold), Citigroup (shares of which it has owned since 1991), and a growing number of tech companies.
The prince and Kingdom Holding – of which he was believed to own 95 percent – first invested $300 million in Twitter in 2011, two years before the company went public. In 2015, he invested another $50 million to increase his ownership in Twitter and, as of 2016, remained one of the company’s largest shareholders.
In 2013, Kingdom also acquired 2.5 percent of China-based retailer JD.Com, which went public on the Nasdaq the following year and whose shares have more than doubled since.
Prince Alwaleed and Kingdom further acquired a stake in the car-hailing company Lyft in early 2016, buying some of the shares of its earlier investors Andreessen Horowitz and Founders Fund.
What happens to Kingdom's stakes in these companies now is an open question. It's far from the only one, either.
For example, ann investor conference in Riyadh last October that was organized by Crown Prince Mohammed and attended by several thousand people – including billionaire investor Peter Thiel, Blackstone Group cofounder Stephen Schwarzman, SoftBank founder Masayoshi Son, and United States Treasury Secretary Steven Mnuchin – was designed to showcase Saudi Arabia's growing influence in the business world.
Yet a newly delayed initial public offering of the world's largest oil company, Saudi Aramco, has some wondering who, exactly, is in charge. Crown Prince Mohammed has been pushing Saudi Arabia to sell 5 per cent of Saudi Aramco as part of a broader economic reform program. He also reportedly wants to list its shares in New York, as well as on Saudi Arabia’s Tadawul exchange.
But according to a weekend report in the The Financial Times, those assessing the company are struggling to arrive at the $2 trillion valuation sought by the crown prince. Further, senior Saudi ministers and Saudi Aramco executives have said privately that London might be a better fit than New York, says the FT's report, which suggests the offering, once expected this year, could now be delayed until 2019.
Saudi Aramco could skip the red tape and list its IPO at home
Saudi Aramco could choose to simplify the IPO process by starting with an offering in its home market as well as private placements with Asia investors.
Aramco could be the world's largest IPO, and sources say it could later offer stock on an international exchange.
Saudi Aramco officials say a range of options are under active review and no decision has been made.
https:// www.cnbc.com/2018/03/13/saudi-aramco-could-skip-the-red-tape-and-list-its-ipo-at-home.html?__source=yahoo%7Cfinance%7Cheadline%7Cstory%7C&par=yahoo&yptr=yahoo
Saudis reportedly wielding veto power over top investor Prince Alwaleed
Investment decisions at Kingdom Holdings and by Prince Alwaleed Bin Talal are now subject to approval by the Saudi government, The Wall Street Journal reports.
Alwaleed is one of dozens of influential Saudis swept up in a controversial anti-corruption crackdown last year.
Saudi officials have directed Kingdom Holdings to abandon the massive Jeddah Tower and instead focus on an economic city announced in October by the powerful Crown Prince Mohammed bin Salman, the Journal reports.
Prince Alwaleed Bin Talal remains chairman of Kingdom Holding Company following his release from detention, but the Saudi government reportedly has final say over decisions at the investment firm.
Investment decisions at Kingdom Holding are now subject to approval by the government, The Wall Street Journal reported on Monday, citing senior Saudi advisers. Kingdom Holding has $12.5 billion invested across more than a dozen sectors around the world, according to its website.
Alwaleed's personal investment portfolio is also under government control, according to the Journal. Alwaleed holds substantial stakes in companies like Citigroup, Twitter, Lyft and Time Warner. The Journal report does not indicate whether the government has exercised its newfound influence over these investments.
However, sources tell the Journal the government has already intervened in a major real estate project, ordering senior managers at Kingdom Holding to abandon the Jeddah Tower, which would be the world's tallest skyscraper when — and if — it is completed.
Officials have directed Kingdom Holding to instead focus its energy on a new city called Neom, which is expected to cost $500 billion to build.
The project was announced in October by Crown Prince Mohammed bin Salman, the influential king in waiting who is overseeing the kingdom's economic transformation and spearheaded the campaign that led to Alwaleed's detention.
Alwaleed was among dozens of influential Saudis swept up and detained at the Ritz-Carlton in Riyadh in a campaign meant to crack down on graft, according to the government. On Sunday, The New York Times published an investigation alleging the detainees faced coercion and physical abuse.
Alwaleed was once listed as the kingdom's wealthiest man, wielding a net worth of $18.7 billion, but Forbes removed the prince and other wealthy Saudis from its annual Billionaire's List because their finances are uncertain following settlements with the Saudi government.
Long seen as a broker for investors seeking to put money to work in the kingdom, Alwaleed is now stepping back from that role, according to the Journal.
The Saudi government did not respond to the Journal's requests for comment. Kingdom Holding could not immediately be reached by CNBC for comment.
BIG BIG NEWS TO ME
https:// www.cnbc.com/2018/03/12/saudis-wielding-veto-power-over-prince-alwaleed-kingdom-holdings.html?__source=yahoo%7Cfinance%7Cheadline%7Cstory%7C&par=yahoo&yptr=yahoo
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