Dubai-listed Depa PLC said on Friday it has entered into an agreement with Saudi Arabia’s Public Investment Fund (PIF), whereby the sovereign wealth fund will acquire a majority stake in the company in return of cash investment worth 150 million dirhams ($40.84 million).
In a statement on Friday, Depa said that the deal would allow the PIF to own 55 percent of the company, with the right to purchase additional shares and a stake of approximately 62.5 percent within a period of up to 18 months after the completion of the deal.
As part of the transaction, Depa’s board will be expanded to include six more members all of whom will be nominated by PIF.
Depa is an Emirati company specialized in decoration and interior designs. It was listed on Nasdaq Dubai in 2008.
Al-Futtaim Capital owns 26.4 percent of the company’s shares, Mashreq Bank owns about 24.2 percent, followed by Al Mazrouei Investment (8.9 percent) and Clarity Fund (7.7 percent).
The company had previously undertaken the furnishing of the Burj Khalifa, the Emirates Palace Hotel and the Burj Al Arab.
The Saudi Public Investment Fund continues the policy of diversifying its investment portfolio. Earlier this week, Moody’s Investors Service assigned an A1 long term issuer rating (Global Scale Rating (GSR)) and a1 Baseline Credit Assessment (BCA) to PIF.
Moody’s gave the fund an A1 rating with a stable outlook, while Fitch gave the fund a long-term issuer rating of A with a stable outlook.
