Troubled Saudi group Saad slashes 29% holding in Berkeley

Shares in housebuilder Berkeley have been changing hands at a fast rate of knots as a result of financial problems at the troubled Saudi group Saad.

Saad’s sale of its quoted investments started with the off-loading of its stake in Berkeley.

Today’s Guardian reports that Citigroup put 16m Berkeley shares on the market yesterday on behalf of Saad at a price of 701p each, representing a 15% shareholding.

“The shares are believed to have gone to existing investors in the company,” said the paper.

In a second deal, another 4m shares were quietly sold on at 715p each.

Saad has found itself needing to restructure its debt because the Saudi central bank froze the accounts of its billionaire founder Maan Al-Sanea.

He had built up a stake of nearly 29% of Berkeley.

Berkeley shares closed down 43p at 782p at the end of yesterday’s trading.

Earlier this year Saad gave its support to a £50m placing of new shares, pitched at 840p a share, when Berkeley told the world that it was a good time to build up its financial muscle in order to be able to buy more land when bargains inevitably surfaced as rivals fell victim to the financial squeeze.