Saudi Arabia’s Public Investment Fund (PIF) is planning to acquire a 30 per cent stake in local supermarket chain Tamimi Markets Company, the kingdom’s sovereign wealth fund said on Thursday.
The transaction, which will involve a capital increase and subscription for new shares, aligns with the fund’s strategy to enable the private sector and create Saudi national champions, said PIF.
“This investment aims to enable Tamimi Markets to fulfil its full potential, transforming it from one of the leading national grocery chains to a major regional chain,” PIF said in an emailed statement.
“It aims to support the company’s ambitious plans through expansion of its operations and commercial opportunities, including acceleration of regional growth and a potential initial public offering.”
PIF, which has more than $620 billion in assets under management, signed a share subscription agreement to invest in Tamimi Markets.
Head of consumer goods and retail, Mena investments division at PIF, Majed AlAssaf, said: “PIF is investing in the grocery and food supply chain to ensure a strong Saudi presence in the market, enabling the private sector to capitalise on positive market demand.”
The agreement can further expand Saudi presence in the key sector where Tamimi Markets and other local grocery chains can benefit from a positive long-term trajectory.
Chairman of Tamimi Holding, Tariq AlTamimi, said: “This partnership will enable us to accelerate and expand our store network across the region, optimising the significant growth that is expected in this market over the next few years.’’