Tharawat, IIB buy into Saudi fast food brand
Manama, February 26, 2013
Bahrain-based Tharawat Investment House, an Islamic investment house, and International Investment Bank (IIB) have acquired a 49 per cent stake in Saudi Arabia’s Hungry Bunny fast food restaurant chain.
The Hungry Bunny brand, which is owned by Saudi businessman Mohamed bin Husain Al Dosary, is registered in the US, European Union, Middle East and the GCC states. The chain owns 38 branches which operate throughout Saudi Arabia, Bahrain, Kuwait and Oman under worldwide franchise agreements.
Arif Mohamed Al Alawi, Tharawat's chief executive officer said: "The 49 per cent acquisition of the Hungry Bunny has been completed with the participation of IIB, which is a Bahrain-based Sharia compliant bank, as a major shareholder in the acquisition transaction along with other GCC investors."
"The Hungry Bunny employs around 500 people of various nationalities and employs the most advanced technologies with 2011 sales totaling more than SR52 million and 18% profit margin in that year.
"The company is currently building a high-tech facility using the latest European technological standards for processing different kinds of meat to be fully dedicated for its own brand and to serve other shopping centers. The annual rate of return of this investment is expected to reach 25 per cent per annum with a forecast to pay 8 per cent dividends to the investors in every year,” he added.
"Saudi Arabia's fast food outlet sector is growing at an annual rate of 5 per cent and such growth is anticipated to continue at the same rate during the next five years,” he concluded.
Abid Al Zeera, IIB chief executive officer said: "Our acquisition of a strategic equity in the Hungry Bunny is part of the Bank's objectives to penetrate and expand this vital service sector for which we shall focus our expertise for the development of this Company and boosting its sales and profits."
"Participation with Tharawat Investment House in this transaction is the start of a strategic partnership through which we look forward to future alliances and business deals for both sides in other sectors in the future," he added.
Al Dosary, who owns 51 per cent of the Hungry Bunny restaurant chain, said: “[We] hope that the two organizations would bring in their expertise to take us to new broader horizons for this company to the benefit of a larger investor base through a public offering on the Saudi stock market during the next four years." – TradeArabia News Service