Investcorp buys stake in Saudi Bindawood Group

RetailME Bureau

Bahrain-based financial institution Investcorp has acquired a minority stake in Saudi Arabia’s Bindawood Holding, which controls Bindawood and Danube supermarket chains in the Kingdom.

The Bindawood Group manages around 40 supermarkets and hypermarkets in the Kingdom, with Bindawood focusing on mid-market customers and Danube targeting more affluent consumers.

Investcorp’s investment will allow the company to pursue an aggressive expansion plan targeting opening over 30 new stores in the coming years. 

It is Investcorp’s sixth investment in Saudi Arabia, reputedly surpassing the value it paid for jewellery company L’Azurde that was previously the investment firm’s biggest Middle Eastern deal.

According to Abdul Razzaq Bindawood, chairman of the board of Bindawood Holding, the transaction will help the firm structure its expansion as well as provide experience in institutionalising the company.

The deal signifies the investor appetite for Saudi Arabian retail names, as the young Saudi population with surplus disposable income ensures the sector retains its allure despite concerns over the impact of lower oil prices on the Saudi economy.

Facebook Comments

Comments

comments