Fawaz Al Hokair approves Blanco stake sale for SAR 350 mln

Fawaz Abdulaziz Al Hokair Co.’s board of directors on Tuesday approved the sale of its full stake in Spanish clothing retailer Blanco for SAR 350 million to an investment fund, the Saudi retailer said in a statement to Tadawul.

The deal value will be paid in five deferred and equal annual installments, the first of which will be due one year after the deal completion.

In addition, SAR 25 million in forward sale costs will be added to the purchase value.

Al Hokair added that the board also approved the annual payment guarantees provided by the fund, including a pledge of its shares as well as Al Hokair’s major assets in Blanco including Global Leiva, Far East Fashion Trading Limited and the brand operator in Portugal along with their trademark rights in favor of the Saudi retailer.

In addition, chairman Fawaz Abdulaziz Al Hokair will also provide a personal guarantee, being a shareholder in the fund.

The company added that the deal is subject to shareholder approval at Al Hokair’s upcoming extraordinary general assembly meeting.

On June 6, Al Hokair received an offer from a fund managed by a Dubai-based investment bank to buy out its holding in Spanish Blanco for SAR 350 million. 

The Saudi-based retailer in 2014 had inked a deal to buy the assets of Blanco for SAR 58.2 million.