StanChart’s private equity arm looks to shed Saudi Binladin Group stake
The situation exposes the potential pitfalls for foreign investors resulting from the crackdown in the desert kingdom
Dubai — Standard Chartered’s private equity arm is seeking to sell its stake in a unit of Saudi Binladin Group, the construction group whose owners were entangled in Saudi Arabia’s anti-corruption purge, said three sources familiar with the matter on Monday. Construction Products Holding’s (CPC) parent company Binladin is undergoing a restructuring which will likely affect its hundreds of units, after the government took a stake in the conglomerate and formed a committee to oversee its management. Two of the sources said Standard Chartered was not comfortable with uncertainty over what the shake-up could mean for CPC, which specialises in building materials and services, in the absence of specific details about the restructuring. Standard Chartered declined to comment. CPC could not immediately be reached for comment. It was not immediately clear if the bank had any plans to sell its stake before Binladin was caught up in the government’s anti-graft campaign, which sent shockwaves t...
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