Saudi Arabia’s Public Investment Fund (PIF) secures a significant 40% stake in Selfridges, collaborating with Thailand’s Central Group, ending a phase of instability for the retailer.
- The strategic acquisition by PIF marks an increase from its previous 10% interest, reinforcing the fund’s intent to diversify Saudi Arabia’s investments beyond oil.
- Central Group, a key player in retail, holds the majority stake and sees potential growth through this partnership.
- Selfridges faced financial challenges, reporting losses despite increased sales, but new investments aim to stabilize its economic standing.
- This acquisition is a part of Saudi Arabia’s broader global investment strategy, contributing to the retail sector’s future development.
In a move that concludes a period of uncertainty for Selfridges, Saudi Arabia’s Public Investment Fund (PIF) has acquired a significant 40% stake in the company. This purchase was made possible after acquiring shares from Signa, an Austrian company previously embroiled in financial scandal. The acquisition reflects PIF’s strategy to expand its international portfolio, now having enhanced its stake from 10% to 40%.
The Central Group, a well-established name in the retail industry, retains a 60% majority in Selfridges following the transaction. The group is optimistic about the partnership, with Executive Chairman Ros Chirathivat stating, “PIF’s proven global track record of investments combined with our luxury retail industry expertise will allow Selfridges Group to continue to flourish.”
Selfridges had been experiencing financial difficulties, having reported a £38 million loss despite a commendable 30% sales increase for the year ending in January 2023. The infusion of new capital is expected to mitigate these challenges by focusing on debt reduction within Selfridges’ property portfolio.
Turqi Al-Nowaiser, PIF’s deputy governor, expressed optimism about the future of Selfridges, noting that this transaction will bolster the retailer’s position as a top destination in the retail landscape.
The acquisition aligns with Saudi Arabia’s broader aim to diversify its economy, moving away from an over-reliance on oil revenues. This strategy also saw PIF’s involvement in various other global sectors, including stakes in Newcastle United and Heathrow Airport.
The strategic collaboration between PIF and Central Group signifies a promising trajectory for Selfridges, aligning with Saudi Arabia’s broader economic diversification goals.
