Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Asharq Al-Awsat
Asharq Al-Awsat
Business
Riyadh - Asharq Al-Awsat

Saudi PIF Extends Portfolio by Taking Majority Stakes in Design Company

Saudi PIF logo

Dubai-listed Depa PLC said on Friday it has entered into an agreement with Saudi Arabia’s Public Investment Fund (PIF), whereby the sovereign wealth fund will acquire a majority stake in the company in return of cash investment worth 150 million dirhams ($40.84 million).

In a statement on Friday, Depa said that the deal would allow the PIF to own 55 percent of the company, with the right to purchase additional shares and a stake of approximately 62.5 percent within a period of up to 18 months after the completion of the deal.

As part of the transaction, Depa’s board will be expanded to include six more members all of whom will be nominated by PIF.

Depa is an Emirati company specialized in decoration and interior designs. It was listed on Nasdaq Dubai in 2008.

Al-Futtaim Capital owns 26.4 percent of the company’s shares, Mashreq Bank owns about 24.2 percent, followed by Al Mazrouei Investment (8.9 percent) and Clarity Fund (7.7 percent).

The company had previously undertaken the furnishing of the Burj Khalifa, the Emirates Palace Hotel and the Burj Al Arab.

The Saudi Public Investment Fund continues the policy of diversifying its investment portfolio. Earlier this week, Moody’s Investors Service assigned an A1 long term issuer rating (Global Scale Rating (GSR)) and a1 Baseline Credit Assessment (BCA) to PIF.

Moody’s gave the fund an A1 rating with a stable outlook, while Fitch gave the fund a long-term issuer rating of A with a stable outlook.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.