KHC says Brexit cost it SAR 150 mln on AccorHotels deal

Kingdom Holding Co. (KHC) will earn SAR 150 million riyals ($40 million) less revenue from its acquisition deal with France’s AccorHotels due to currency fluctuations brought on by Brexit, the Saudi-based investment firm said in a statement to Tadawul on Tuesday.

"The fluctuations in sterling and euro against the dollar as a result of the British referendum to leave the European Union had some impact on the deal," KHC explained, noting the financial impact would be reflected in on Q3-2016 resuslts.

Earlier on Tuesday, the Tadawul-listed firm announced that it had completed the acquisition of a 5.8 percent stake in AccorHotels in a deal worth $3.2 billion.

AccorHotels paid $840 million in cash and issued 46.7 million shares in exchange for FRHI shares, giving KHC and QIA stakes of 5.8 percent and 10.4 percent, respectively.

Under the terms of the deal, KHC will also acquire a stake in the Claremont Hotel in California and an increase in its holding of London's Savoy hotel to 58.8 percent.

The news came after AccorHotels signed an agreement in December with KHC, Qatar Investment Authority (QIA), and Ontario-based Oxford Properties to acquire FRHI Holdings, owner of the Fairmont, Raffles and Swissôtel hotel brands.