Cenomi Retail says strategic investor to acquire up to 49.95% stake

Logo of Fawaz Abdulaziz Alhokair Co. (Cenomi Retail)

Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) announced the latest developments regarding its talks with a strategic investor.

In a statement to Tadawul, the company said that the strategic investor intends to acquire a stake of up to 49.95% of its total share capital, and is currently in negotiations with a number of substantial shareholders to agree to purchase this stake from Abdul Majeed Alhokair, Salman Alhokair, Fawaz Alhokair, Saudi FAS Holding Co. and FAS Real Estate Co.

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The negotiations between the strategic investor and the substantial shareholders are ongoing to reach a deal on the terms and conditions of this transaction, including the price and other final terms, which shall be announced in due course in line with regulatory requirements.

Furthermore, discussions are currently underway between the strategic investor and the company on a shareholder loan agreement following the stake acquisition.

The loan amount, including other terms and conditions, is being negotiated.

The shareholder loan, if provided, will help improve the company's current financial status, enabling it to overcome its existing challenges and maintain business continuity.

Cenomi Retail said that the strategic investor operates in several sectors, including fashion and retail, and holds franchise and operating rights for a large number of global commercial brands.

The shareholder loan from the strategic investor will contribute to strengthening the company’s financial position, improving its operational performance, supporting its stability, and enhancing its ability to grow, as well as achieve its operational goals.

The transaction, including the shareholder loan, remains subject to execution of the final agreement and is contingent upon fulfilling several conditions, including obtaining the relevant regulatory approvals.

Any material developments shall be announced in due course, the statement said.

According to data available on Argaam, Cenomi Retail ended, in January, negotiations with a leading global fashion retailer over a potential merger involving several fashion franchises.

 The company was exploring other strategic options, including a possible deal with a strategic investor.