Saudi's Kingdom Holding says Brexit cost it $40 million on AccorHotels deal

Saudi Arabia’s Kingdom Holding on Tuesday said it will record 150 million riyals ($40 million) less revenue from its share-swap deal with AccorHotels due to foreign currency fluctuations caused by Brexit.

The investment firm of billionaire Prince Alwaleed bin Talal in December agreed to exchange its stake in FRHI Holdings – the parent of brands including Fairmont and Raffles – for a 5.8 per cent stake in the French firm as well as cash worth 1.27 billion riyals and other assets.

“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,” Kingdom said in a filing to the Saudi bourse, noting the financial impact would be reflected in its third quarter earnings.

Among the other assets which Kingdom will receive as part of the deal include a stake in the Claremont Hotel in California and an increase in its holding of London’s Savoy hotel to 58.8 per cent.

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