Saudi PIF signs MoU with Hong Kong-listed ChaoShang Group
Negotiations will finalise the specific obligations and terms of the agreement
Dubai: The Saudi Public Investment Fund (PIF) enters a memorandum of understanding (MoU) with Hong Kong-listed ChaoShang Group, aiming for a potential investment of $500 million (Dh1.8 billion), according to a report by Saudi financial news portal Argaam.com.
Hong Kong ChaoShang Group Ltd is an investment holding company. It is engaged in trading, moneylending, finance leasing, and finance services and founded in 2002.
According to a statement by ChaoShang, the investment structure includes $100 million (Dh367 million) in five-year convertible debentures and $400 million (Dh1.4 billion) in a five-year loan.
The MoU, which currently includes provisions related to termination, confidentiality, notices, governing law, and jurisdiction, is not yet legally binding.
ChaoShang Group indicated that over the next three months, negotiations will finalise the specific obligations and terms of the agreement. There is a possibility of extending this period pending mutual agreement.
With the financial backing from the Saudi sovereign fund, ChaoShang plans strategic initiatives, particularly in industries such as mining and healthcare.