Standard Chartered’s 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.
Construction Products Holdings (CPC)’s parent company, Binladin, according to Zawya, is undergoing a restructuring exercise which will likely affect hundreds of units after the government acquired a stake in the conglomerate and formed a committee to oversee its management.
Standard Chartered Private Equity bought a minority stake in CPC for $ 75 million in 2011, its first investment in Saudi Arabia, as it sought to benefit from the firm’s leading role in the kingdom’s construction market and its regional growth plan.
CPC has operations in countries including Saudi Arabia and Egypt. In 2014, when it considered an initial public offering (IPO), it had annual sales of about SAR 10 billion ($ 2.7 billion).