Alhokair buys major stake in UK online store VogaCloset
RIYADH, October 21, 2021
Fawaz Abdulaziz Alhokair Co, a leading franchise retailer in Saudi Arabia, has announced that it has acquired 39,253 ordinary shares of VogaCloset, a UK based online store tailored directly to the Middle East and North Africa region, for SR69 million ($18.3 million).
The stake buy in the e-commerce platform comes following a share purchase agreement (SPA) signed by the Saudi retailer in March this year.
As part of the agreement, Vogacloset has also transferred 13,598 existing shares, and issued 25,655 new shares, to Arabian Centres Company (ACC), representing 25.5% of Vogacloset’s share capital post capital increase pursuant to the SPA, stated Alhokair in its filng to the Saudi bourse Tadawul.
In turn, Alhokair will transfer the 39,253 ordinary shares in Vogacloset to FAS Labs, a newly established limited liability company jointly owned by Alhokair and ACC, for the purpose of leading the comoanies' joint digital initiatives. FAS Labs will act as a subsidiary of Alhokair, it added.
While on one hand the Saudi francise retailer completed a stake buy in a major e-commerce platform, it is all set to exit a key investment in the US with the potential sale of its 66.67% stake in Billy Beez US, an entity owned by Retail Group of America, which is a wholly-owned subsidiary of Alhokair.
Retail Group of America LLC operates in the entertainment sector and has the franchise rights for Billy Beez, an indoor kids’ entertainment center currently operating across 13 locations in the US.
Alhokair had early this month reached an agreement with Newco Corporation, comprising a group of senior entertainment industry professionals with experience in North America, Europe and Southeast Asia, for the strategic sale.
This comes is in line with its strategy to exit non-core markets and segments while continuing to diversify its retail and F&B portfolio to become the leading lifestyle retailer of choice in Saudi Arabia and selected growth markets.-TradeArabia News Service
