Saudi Arabia’s Seera Group has signed a non-binding term sheet with the kingdom’s Public Investment Fund (PIF), which will see the fund invest SAR 1.554 ($414 million) in its subsidiary Almosafer Travel and Tourism Company.

Almosafer will use the capital to scale its inbound, outbound, religious and domestic tourism operations, Seera Group said in a statement to the Saudi Stock Exchange, Tadawul.

The investment in the wholly owned subsidiary is based on a preliminary pre-money enterprise value of SAR 3.75 billion ($1 billion) including an earn-out amount, Seera said.

Almosafer operates in consumer and business travel as well as destination management, Hajj and Umrah. 

 PIF aims to have a shareholding of 30% for a consideration of SAR 1.554 billion, including up to SAR 386 million earning out amount, to be paid to Almosafer in subscription for new shares in Almosafer, the statement added.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)