Cenomi Retail: Strategic Investor Intends to Acquire Stake up to 49.95%

Fawaz Abdulaziz Alhokair Company (Cenomi Retail) announced on Sunday that the strategic investor intends to acquire a stake in the Company of up to 49.95% of its capital (the “Strategic Investor”) and is currently negotiating with a number of the Company’s major shareholders to acquire this stake through a private acquisition transaction. These shareholders are: Abdul Majeed Abdulaziz Alhokair, Salman Abdulaziz Alhokair, Fawaz Abdulaziz Alhokair, Saudi FAS Holding Company and FAS Real Estate Company. Negotiations are currently underway to agree on the terms of this transaction, including the price and other final terms, which will be announced in due course, in accordance with relevant regulatory requirements and procedures.

The Company stated in a statement today on Tadawul that discussions are currently underway between the Strategic Investor and the Company regarding the conclusion of a shareholder loan agreement. Under this agreement, the Strategic Investor will provide a shareholder loan to the Company upon completion of the aforementioned private acquisition transaction. Negotiations are currently underway on the loan amount and other related terms and conditions. The purpose of the shareholder loan, if provided, is to improve the Company’s current financial position, enabling it to overcome existing challenges and maintain business continuity, in a manner that serves the interests of the Company and its shareholders.

The Company notes that the Strategic Investor is a company specialised in several operational sectors, including fashion and retail, and holds franchise and operating rights for a wide range of the most well-known global commercial brands. If it enters the Company as a strategic investor and supports the Company through the aforementioned financing, this will contribute to strengthening the Company’s financial position, improving its operational performance, supporting its stability, enhancing its growth opportunities, and achieving its operational objectives.

The Company notes that the private acquisition transaction referred to above, including the provision of the shareholder loan by the Strategic Investor, is still subject to the conclusion of final agreements. If such agreements are concluded, they will also be subject to a number of conditions, including obtaining relevant regulatory approvals. Any material developments will be announced in due course in accordance with relevant regulatory requirements and procedures.

This refers to Fawaz Abdulaziz Alhokair Company’s (Cenomi Retail) announcement published on the Saudi Exchange (Tadawul) website on Rajab 12, 1446 AH (corresponding to January 12, 2025 AD) regarding the latest developments in its previous announcement of entering into negotiations regarding a potential material transaction and the possibility of concluding a transaction with a strategic investor.