RIYADH: Saudi Arabia’s sovereign wealth fund has signed a non-binding deal with Seera Group to acquire a SR3.75 billion ($1 billion) stake in its travel unit Almosafer.

The Public Investment Fund seeks to hold 30 percent of Almosafer’s capital, Seera Group said in a bourse filing.

As part of the deal, Seera’s destination management subsidiary Discover Saudi and its Hajj and Umrah operator Mawasim will fall under the umbrella of Almosafer.

 The proposed transaction is a strategic milestone in Seera’s pioneering transformation plan announced in 2017, to strengthen the group’s businesses and enhance long-term value for shareholders, the group said.

Almosafer aims to use the capital injection to scale up its tourism operations and strengthen its position as a leading travel agency in the Kingdom.