Alwaleed gives Citi shares to his Kingdom Hldg

RIYADH Jan 5 (Reuters) - Saudi billionaire Prince Alwaleed bin Talal has transferred his shares in Citigroup (C.N) worth 2.24 billion riyals ($597.3 million) to Kingdom Holding 4280.SE in which he holds a 95-percent stake, Kingdom said on Tuesday.

"(Kingdom) announces that it received on Tuesday a donation from Prince Alwaleed in the form of 180 million shares in Citigroup of which the value stands at 2.24 billion riyals as of end-2009," the company said in a statement posted on the bourse website.

It said the donation was done "free of charge", without elaborating further.

Earlier on Tuesday, the Saudi bourse watchdog said it approved a request by KHC to reduce its paid-up capital by more than 40 percent. [ID:nLDE60417D]

The regulator did not disclose the purpose of the capital reduction.

(Reporting by Souhail Karam; editing by Firouz Sedarat)