Emirati conglomerate Al Futtaim is to buy a 49.95 per cent stake in Saudi Arabian franchiser Cenomi Retail in a deal worth more than 2.5 billion riyals ($667 million), Cenomi Retail said in a statement yesterday.
Cenomi Retail’s founding shareholders signed a share purchase agreement with Al Futtaim with shares priced at 44 riyals each, said the statement.
As part of the share purchase agreement’s completion conditions, the two companies are negotiating a shareholder loan of at least 1.3bn riyals to boost Cenomi Retail’s balance sheet.
Cenomi Retail is a large franchiser in Saudi Arabia operating food and retail outlets, while Al Futtaim of the UAE is a private business group with operations ranging from financial services to real estate and retail.
“This investment represents substantial foreign direct investment (FDI) from the UAE private sector and underscores the robust economic partnership between our countries,” Al Futtaim’s vice chairman and CEO Omar Al Futtaim said in the statement.
&uuid=(email))