Saudi Arabia’s Public Investment Fund (PIF), in partnership with Thailand’s Central Group, has acquired a 40% stake in the iconic British retail group Selfridges.
- The acquisition ends months of uncertainty surrounding the retailer’s future, following the collapse of previous owner Signa due to a fraud investigation involving Rene Benko.
- Central Group now holds a 60% majority stake in Selfridges, marking a significant increase in control for the family-owned conglomerate.
- This strategic acquisition aligns with Saudi Arabia’s broader efforts to reduce reliance on oil by expanding international investments.
- The partnership aims to strengthen Selfridges’ financial position with new investments focusing on debt reduction and growth.
The recent acquisition of a 40% stake in Selfridges by Saudi Arabia’s Public Investment Fund (PIF), in collaboration with Thailand’s Central Group, marks a significant turning point for the British retail giant. This transaction concludes a period of instability for Selfridges, which ensued after the collapse of its former owner, Signa. Signa’s financial difficulties were compounded by a fraud investigation involving its Austrian proprietor, Rene Benko.
The agreement confers a 60% majority ownership of Selfridges to Central Group, reinforcing the company’s influence over the brand’s property and operational affairs. This development also underscores Saudi Arabia’s strategic expansion of its global investment portfolio, as PIF—which already holds interests in various high-profile entities such as Newcastle United Football Club, luxury hotel chains, and major airports—strengthens its international presence.
Both PIF and Central Group have committed to new investments aimed at alleviating Selfridges’ debt burden. This initiative comes in the wake of Selfridges Retail Limited’s reported £38 million loss for the fiscal year ending January 2023, despite a notable 30% increase in sales. Ros Chirathivat, Central Group’s executive chairman, highlighted the partnership’s potential benefits, citing PIF’s investment expertise and Central Group’s retail acumen as key drivers for future growth and innovation in Selfridges.
The collaboration is anticipated to enhance Selfridges’ status as a premier retail destination, with PIF’s Deputy Governor, Turqi Al-Nowaiser, expressing optimism about the possibilities this partnership brings. He emphasised the transaction as an opportunity for Selfridges to capitalise on its strong market position.
This strategic move forms part of Saudi Arabia’s broader agenda to diversify its economy and reduce its dependency on oil revenues, a goal that has seen PIF become a major player in global sovereign wealth fund investments last year.
The partnership between Saudi Arabia’s PIF and Central Group promises to revitalise Selfridges, reinforcing its position in the luxury retail market.
