Saudi Arabia’s sovereign wealth fund is set to acquire a 54 percent stake in media giant MBC Group for SR7.46 billion ($1.99 billion).

In a bourse filing, MBC Group, listed on the Kingdom’s main market, said that it was notified by Istedamah Holding Co., one of its major shareholders, on the finalization of a sale and purchase agreement with the Public Investment Fund on Nov. 1.

According to the agreement, Istedamah will sell its entire stake in MBC, valued at 179.55 million shares, representing 54 percent of the company’s total capital, to PIF through a private transaction.

Touted to be Saudi Arabia’s economic engine, PIF is spearheading the Kingdom’s Vision 2030 journey by making strategic investments in various sectors.

Some prominent telecom, media, and technology firms backed by the wealth fund include Saudi Co. for Artificial Intelligence, Saudi Information Technology Co., Elm Co., and Saudi Telecom Co.

“The completion of the transaction is subject to a number of conditions, including obtaining the necessary approvals and non-objections that might be required from the relevant entities,” said MBC Group.

It added: “The transaction will be executed as a negotiated deal in accordance with the Saudi Exchange’s trading and membership procedures at the completion of the transaction.”

Followiing the announcement, the share price of MBC Group increased by 9.98 percent to SR45.75 as of 11:.37 a.m. Saudi time.

Established in 1991 and formerly known as the Middle East Broadcasting Center, MBC Group currently owns several television channels, including Al Arabiya, MBC Max, and MBC Bollywood, as well as the OTT platform Shahid.

In August, the media giant said its net profit for the first six months of this year surged 359.8 percent to SR237.8 million compared to the same period in 2023.

The company added that its net profit for the second quarter witnessed a rise of 66.5 percent to SR116.4 million, compared to the same period of the previous year.

PIF is set to reach $2 trillion in assets under management by 2030, propelling it from fifth to second place globally among sovereign wealth bodies, according to a report by Global SWF in April.

As per SWF’s release, PIF took the lead as the top investor among all sovereign wealth funds, allocating $31.6 billion across 49 deals in 2023, representing a 33 percent increase from the prior year.

In March, PIF’s assets under management surpassed $925 billion, up from $700 billion at the end of 2022, securing its position as the fifth-largest global sovereign wealth fund.