Riyadh- Saudi Public Investment Fund (PIF) plans to buy a 50% stake in Adeptio AD Holdings SPC Ltd. from Emirati businessman Mohamed Alabbar.
According to the PIF, Adeptio acquired earlier 67% of Kuwait Food Co (Americana).
“Following the acquisition of this stake in Americana, Adeptio will launch a mandatory tender offer for the remaining shares in Americana held by public shareholders,” the PIF added in its press release.
It said the transaction “forms part of the Public Investment Fund’s efforts to increase investment in non-oil sectors and build a portfolio that has greater geographical and asset class diversification, and which delivers attractive long-term financial returns for Saudi Arabia”.
Americana was established in Kuwait in 1964. Up to 60,000 employees work in its branches distributed in more than 13 countries. It enjoys franchise rights of restaurant chains in the Middle East including Pizza Hut and Kentucky.
PIF has a diverse portfolio that includes around 200 investments, 20 out of them are listed in Tadawul.
The supervision over the fund has been transferred in 2015 from the Ministry of Finance to the Council of Economic and Development Affairs. Since then, a new strategy has been placed to enhance governance and interaction with various elements of the portfolio plus implementing the developed investment strategies that go in tandem with Saudi Vision 2030.
The Public Investment Fund aims at building a diverse portfolio at the regional and local levels and reinforcing the income sources of diversification in the Kingdom through achieving long-term financial returns on foreign and local investments.
This is the second deal to be sealed between the PIF and Alabbar. Previously, noon has been announced as the first e-trade platform in the Arab region.