Saudi Arabia’s Public Investment Fund (PIF) has acquired a substantial 40% stake in Selfridges, partnering with Thailand’s Central Group.
- This acquisition ends the period of uncertainty following the collapse of the previous stakeholder, Signa, due to fraud investigations.
- The deal strategically enhances PIF’s investment portfolio by increasing its stake from 10% to 40%, aligning with Saudi Arabia’s diversification goals.
- Central Group will maintain a 60% majority stake, ensuring its continued leadership in Selfridges’ properties and operations.
- The acquisition includes new investments focused on debt reduction, amid Selfridges’ recent financial losses.
In a strategic move, Saudi Arabia’s Public Investment Fund (PIF) has increased its stake in the iconic department store Selfridges to 40%. This acquisition concludes a period of uncertainty for Selfridges, following a significant overhaul in its ownership structure. The previous stakeholder, Signa, owned by Austrian tycoon Rene Benko, faced collapse amid a fraud investigation, necessitating the acquisition of its stakes.
The agreement positions PIF as a powerful global investor, previously holding smaller stakes in prominent entities such as Newcastle United and Heathrow Airport. This increase from a 10% to a 40% stake in Selfridges underscores Saudi Arabia’s strategic intention to diversify its investments internationally, reducing reliance on oil revenues.
Central Group, a family-owned retail conglomerate from Thailand, retains its majority 60% stake in Selfridges. The group had previously secured control by converting a €364 million loan into equity, thereby reinforcing its leadership prior to finalising the PIF deal. This partnership promises to harness PIF’s investment strength alongside Central Group’s retail expertise.
Notable within the acquisition terms is the provision for new investments aimed at diminishing the debt burden within Selfridges’ property portfolio. The urgency for this financial manoeuvre is highlighted by Selfridges Retail Limited’s reported £38 million loss for the year ending January 2023, despite a marked 30% increase in sales.
Ros Chirathivat, Executive Chairman of Central Group, expressed optimism about the collaboration, stating that PIF’s extensive investment experience, combined with Central Group’s retail knowledge and innovative strategies, will enable Selfridges to continue thriving. Echoing this sentiment, PIF’s Deputy Governor, Turqi Al-Nowaiser, remarked that the transaction will bolster Selfridges’ status as a premier retail destination.
The partnership between Saudi Arabia’s Public Investment Fund and Central Group symbolises a forward-looking approach to strengthening Selfridges’ position in the global retail market.
