Spinneys raises stake in Saudi unit to 70% in SAR 18M deal

Upon completion of the transaction, Spinneys ownership in Spinneys Saudi Arabia will increase from 50% to 70%.

DFM-listed Spinneys 1961 Holding PLC’s board of directors approved the acquisition of an additional 20% stake in Al-Ma’kulat Al-Fakhirah for Food Products (Spinneys KSA) from Abdul Mohsen AbdulAziz Al Hokair Holding Group (Al Hokair), for SAR 18 million ($4.8 million/ AED 17.32 million).

Spinneys said in a statement that, upon completion of the transaction, its ownership in Spinneys Saudi Arabia will increase from 50% to 70%.

The company noted that it has managed the Saudi business since its establishment in 2022 and said the transaction will strengthen its presence and investment in the Saudi market.

The food retailer added that the transaction remains subject to the required regulatory approvals, including approval from Saudi Arabia's General Authority for Competition (GAC).

The company also noted that Spinneys Saudi Arabia is already fully consolidated in its financial statements under IFRS 10 – Consolidated Financial Statements, based on its management control.