Al-Futtaim to Acquire 49.95% Stake in Cenomi Retail in Landmark Investment Deal

Business

Al-Futtaim to Acquire 49.95% Stake in Cenomi Retail in Landmark Investment Deal

Cenomi Retail, one of Saudi Arabia’s leading retail brand partners, has announced the signing of a Share Purchase Agreement (SPA) with UAE-based Al-Futtaim Group for the acquisition of a 49.95% stake. The agreement was reached with the company’s founding shareholders—Fawaz Abdulaziz Alhokair, Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Saudi FAS Holding Company, and FAS Real Estate Company. Shares are priced at SAR 44 each, valuing the deal at over SAR 2.5 billion.

As part of the SPA completion terms, both parties are negotiating a shareholder loan agreement through which Al-Futtaim is expected to inject not less than SAR 1.3 billion into Cenomi Retail. This capital infusion aims to bolster Cenomi Retail’s balance sheet and fuel its future growth plans.

Al-Futtaim’s entry as a strategic shareholder marks a significant milestone in Cenomi Retail’s transformation journey. With a robust legacy in retail, Al-Futtaim is known for managing major international brands such as Zara, Massimo Dutti, and Bershka in regions including Malaysia, Singapore, Thailand, Saudi Arabia, UAE, and Egypt. This deal aligns closely with Saudi Arabia’s Vision 2030, reinforcing its commitment to attracting foreign investment, empowering the private sector, and promoting economic diversification.

Fawaz Abdulaziz Alhokair, one of Cenomi’s founding shareholders, emphasized the strategic significance of this partnership, noting that it will strengthen the company’s financial standing and pave the way for long-term value creation. “This transaction unlocks significant value for all stakeholders and aligns with Saudi Arabia’s Vision 2030,” he said.

Omar Al Futtaim, Vice Chairman and CEO of Al-Futtaim, expressed optimism about the investment: “Our stake in Cenomi Retail reflects strong confidence in the Saudi economy and our belief in its long-term potential. We look forward to helping the company enhance operations, expand its brand portfolio, and drive digital transformation.”

Salim Fakhouri, CEO of Cenomi Retail, stated, “Today’s announcement validates our strategic direction. With Al-Futtaim on board, we are well-positioned to pursue scalable opportunities and deliver long-term value to shareholders.”

Upon transaction completion, Al-Futtaim will actively collaborate with Cenomi Retail’s management and board to drive operational improvements, enhance customer experiences, and unlock substantial shareholder value.

The transaction remains subject to regulatory approvals, including clearance from Saudi Arabia’s General Authority for Competition, and other customary conditions. Cenomi Retail was advised exclusively by Lazard, while Al-Futtaim appointed J.P. Morgan as its exclusive financial advisor.