Kingdom Holding Company, the Saudi Arabian investment firm chaired by billionaire Prince Alwaleed bin Talal, said a group of French companies led by a state-backed investment fund have agreed to invest $150 million in the company.

Aeroports de Paris, insurer AXA and construction group Eiffage are among the companies in the consortium led by France's Caisse des Depots (CDC).

The deal constitutes the acquisition of KHC’s shares by the French group for $150 million subject to increase. The number of shares and acquisition share price will be determined at a time closer to execution, said a statement from KHC.

The share price will be based on the trading price of the stock on the Saudi Stock Exchange (Tadawul).

Prince Alwaleed, who will be retaining his full ownership stake in KHC, welcomed this important and strategic milestone deal even as the Saudi Arabian Capital Market Authority has thrown open the bourse to foreign investors.

He was speaking with President François Hollande at a key meeting held at the French presidential Palace, The Elysee.

The two discussed political, economic and cultural matters. They also hailed the bi-lateral relations between Saudi Arabia and France, and the KHC’s investments in France, considered to be the largest Saudi Arabian presence in France through the ownership and management of The Four Seasons Hotel George V, the Le Royal Monceau Hotel (Raffles), Disneyland, Paris (Euro Disney), 7 hotels in Disneyland, Paris, in addition to the management of the Grand Hotel du Cap Ferrat in the South of France, and through the presence of Citigroup.

The move will enable the companies to "increase their economic presence in Saudi Arabia", he added.

The deal follows signs of strengthening economic ties between Saudi Arabia and France, which agreed on Wednesday to press ahead with feasibility studies to build two nuclear reactors designed by French group Areva.

Last month they set up a joint committee to finalise some 20 projects across sectors ranging from defence to transport infrastructure.

The pricing of the share sale has yet to be decided, Kingdom said.

Other companies in the French consortium include telecoms operator Orange, defence electronics group Safran and environmental services group Suez Envionnement.-Reuters and TradeArabia News Service