Saudi billionaire Prince Alwaleed bin Talal has transferred his shares in Citigroup worth SR2.24 billion ($597.3 million) to Kingdom Holding Company (KHC), in which he holds a 95-per cent stake, the company said on Tuesday.

'(Kingdom) announces that it received on Tuesday a donation from Prince Alwaleed in the form of 180 million shares in Citigroup of which the value stands at SR2.24 billion as of end-2009,' the KHC said in a statement.

Furthermore, the company will realize an additional benefit of SR675 million for every $1 increase for the share price of Citigroup, it added.

The initiative made by Alwaleed and the decision made by KHC will lead the company to profitability and enable KHC to distribute dividends to the company’s shareholders once approved by KHC’s Board of Directors, the statement said.

Moreover, this move will allow Kingdom Holding to enhance its position and increase future borrowing capacity, the company said.

KHC also announced that it will call for an extraordinary general meeting of its shareholders to approve the reduction of the company’s capital from SR63 billion to SR37.5 billion (a share for every 1.7 share).

Prince Alwaleed said, “I personally re-affirm my full and continuous support to Kingdom Holding Company and my initiative to transfer part of my own Citigroup shares is an example of that. We are also confident that these measures will ensure the continuous development of KHC and helps it to withstand the negative repercussions of the global economic crisis.”

“Kingdom Holding will continue its strategic local and international investment plans of the past 30 years,” he added.

KHC’s portfolio has its main interests in local and international investments that include landmark hotel properties, hotel management companies, real estate, financial services, technology, media, retail, agriculture, manufacturing and aviation.

KHC’s local investments include, Saudi Research and Marketing Group (SRMG), National Air Services (NAS), Kingdom Hospital, Consulting Clinics, Kingdom City, Kingdom Centre, Kingdom Schools, SAKS Fifth Avenue, Four Seasons Hotel Riyadh, Savola and Tasnee (National Industrialization Company).

Moreover, Kingdom Holding Company will continue to pursue the development of its two mega real estate projects in Kingdom City Riyadh and Kingdom City Jeddah, the KHC statement added.-TradeArabia News Service