Sinomi Retail, a retail partner in Saudi Arabia, has announced that its founding shareholders have entered into a share purchase agreement with Al-Futtaim, one of the most diversified private business groups in the region.
As part of this agreement, Al-Futtaim will acquire a 49.95% stake in Sinomi Retail from the selling shareholders: Fawaz bin Abdulaziz Al-Hokair, Abdulmajid bin Abdulaziz Al-Hokair, Salman bin Abdulaziz Al-Hokair, FAS Holding Company, and FAS Real Estate, at a price of 44 Saudi Riyals per share, totaling over 2.5 billion Saudi Riyals (approximately 675 million USD). Lazard acted as the exclusive financial advisor to Sinomi Retail during the transaction, while Al-Futtaim appointed JPMorgan as its exclusive financial advisor for this deal.
Currently, Sinomi Retail is negotiating a shareholder loan agreement with Al-Futtaim, under which Al-Futtaim would provide a loan of at least 1.3 billion Saudi Riyals upon completion of the deal. This loan aims to strengthen Sinomi Retail’s balance sheet and support its growth opportunities in the next phase. Finalizing this agreement is a prerequisite for completing the transaction between the selling shareholders and Al-Futtaim. This deal marks a significant milestone for Sinomi Retail as Al-Futtaim enters as a strategic investor with a long-term investment vision, reflecting confidence in the company’s growth potential and its pivotal role in the retail sector in the kingdom.
Omar Al-Futtaim, Vice Chairman and CEO of Al-Futtaim, stated, “Our investment in Sinomi Retail demonstrates our strong confidence in the resilience and stability of the Saudi economy, as well as in the long-term vision of Saudi Arabia 2030. This transaction represents a significant direct foreign investment from the private sector in the UAE and underscores the depth of economic partnership between the two countries. This step enhances our presence in Saudi Arabia, a strategic market with solid economic foundations and a clear developmental vision. We see great opportunities to support Sinomi Retail in enhancing its operations, accelerating its digital transformation, and expanding its brand portfolio. This partnership also serves as a platform to promote future collaboration in the promising Saudi market.”
Fawaz bin Abdulaziz Al-Hokair, one of the selling shareholders regarding the acquisition deal, remarked, “This transaction represents a transformative achievement for Sinomi Retail and its shareholders, as it strengthens its financial position, reduces debt, and establishes a solid financial base for building long-term partnerships with all stakeholders. This deal will also support the company’s growth plans and create greater value for shareholders. With Al-Futtaim joining as a strategic investor, we can leverage its extensive retail experience, broad operational capabilities, and shared long-term vision. Al-Futtaim is an ideal strategic investor given its strong presence in the global retail sector, its financial robustness, and its notable presence in the kingdom. This strategic investment will create significant value for all stakeholders while aligning with Saudi Arabia’s Vision 2030 aimed at diversifying the economy and enhancing its position as a global business and investment destination.”
Meanwhile, Selim Fakhoori, CEO of Sinomi Retail, commented, “This strategic investment from Al-Futtaim reaffirms that Sinomi Retail is on the right strategic path toward the next phase of our growth. We will continue to invest in high-performance global brands that are scalable, contributing to long-term value creation for our shareholders. Having Al-Futtaim as a strategic investor allows us to benefit from its track record of excellence, further strengthening our leadership position in the retail sector and enabling sustainable growth and rewarding returns for all shareholders.”