Cenomi Retail, one of Saudi Arabia’s largest retail brand partners, said on Monday that its founding shareholders have signed a share purchase agreement with UAE-based Al-Futtaim Group to acquire a 49.95 per cent stake in the company for over SAR2.5bn ($666m).
The transaction will see Al-Futtaim purchase shares priced at SAR44 each from selling shareholders Fawaz Abdulaziz Alhokair, Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Saudi FAS Holding Company, and FAS Real Estate Company.
As part of the agreement, Cenomi Retail and Al-Futtaim are negotiating a shareholder loan agreement under which Al-Futtaim will provide no less than SAR1.3bn in funding upon transaction completion.
The loan aims to bolster Cenomi Retail’s balance sheet and support its next phase of growth. Entry into the loan agreement is a condition for the completion of the private transaction.
“This transaction marks a transformative milestone for Cenomi Retail and our shareholders,” said Fawaz Abdulaziz Alhokair, one of the selling shareholders. “By deleveraging our balance sheet and establishing a stronger financial foundation, we are reinforcing long-term partnerships and positioning the company for sustainable growth.”
Al-Futtaim’s investment represents one of the most significant UAE private sector transactions in the kingdom to date and is aligned with Saudi Arabia’s Vision 2030, which aims to diversify the economy and attract foreign capital.
Investment in Cenomi Retail shows confidence in Saudi’s economy, says Al-Futtaim CEO
Omar Al Futtaim, vice chairman and CEO of Al-Futtaim, said: “Our investment in Cenomi Retail reflects our strong confidence in Saudi Arabia’s economy and its long-term Vision 2030. This investment represents substantial foreign direct investment and underscores the robust economic partnership between our countries.”
Al-Futtaim, which operates across automotive, financial services, real estate, retail, and healthcare in the Middle East, Asia, and Africa, brings significant operational scale and retail expertise.
Its retail portfolio includes exclusive operations of Inditex brands such as Zara, Massimo Dutti, and Bershka across Asia and the Middle East, including Saudi Arabia, the UAE, Egypt, Malaysia, Thailand, and Singapore.
The partnership is expected to enhance Cenomi Retail’s operational capabilities, expand its brand portfolio, and support digital transformation initiatives.
“This announcement demonstrates that Cenomi Retail is firmly on the right strategic path,” said Salim Fakhouri, CEO of Cenomi Retail.
“Having Al-Futtaim as a strategic investor enables us to capitalize on their proven capabilities and further solidify our leadership in the retail sector,” he added.
The transaction remains subject to customary regulatory approvals, including clearance from Saudi Arabia’s General Authority for Competition, and other contractual closing conditions.
Lazard acted as the exclusive financial advisor to Cenomi Retail, while J.P. Morgan served as exclusive advisor to Al-Futtaim.
