Riyadh – Mubasher: Fawaz Abdulaziz Al Hokair Company’s board approved on Tuesday to sell the firm’s full stake in Spanish clothing brand Blanco to a fund operated by an investment bank in Dubai for SAR 350 million ($93.3 million).
The amount will be paid in five equal annual installments, of which the first will be due after a year from the purchase.
Credit sale additional costs of SAR 25 million are to be added to the contractual price, according to the company’s filing to Saudi Stock Exchange (Tadawul).
Al Hokair’s net investments in Blanco amount to SAR 350 million, so the deal is based on the current book value of the investment in Al Hokair’s budget in May 2016.
Blanco’s 110 branches in Spainare being operated by Global Leiva Company, a wholly owned subsidiary of Al Hokair.
The transaction will be proposed to Al Hokair’s shareholders in the next extraordinary general meeting.
Al Hokair's chairman Fawaz Abdulaziz Alhokair is among the investors in the fund which made the offer.
