PIF buys 50% stake in Gulf food giant Americana

30/11/2016 05:22 AST

The Public Investment Fund (PIF) is to acquire a 50 percent stake in a UAE firm which last month took control of Kuwaiti food giant Americana.

Through a wholly owned subsidiary, the PIF will obtain the share in Adeptio Holdings from Mohammed Al-Abbar, the head of Dubai property giant Emaar.

An Adeptio Holdings subsidiary, Adeptio, in October completed the nearly $2.4-billion deal for 67 percent of Americana, the group that brought more than a dozen major food brands including Pizza Hut, KFC, Costa Coffee and TGI Friday’s to the Middle East.

This is the latest major PIF venture since Riyadh in April announced its Vision 2030 plan to diversify the economy.

“Following the acquisition of this stake in Americana, Adeptio will launch a mandatory tender offer for the remaining shares in Americana held by public shareholders,” the PIF said in a press release.

It said the transaction “forms part of the Public Investment Fund’s efforts to increase investment in non-oil sectors and build a portfolio that has greater geographical and asset class diversification, and which delivers attractive long-term financial returns for Saudi Arabia.”

San Francisco-based Uber, the smartphone app that connects passengers and drivers around the world, said in June that the PIF would inject $3.5 billion into the firm to help its global expansion.

Last month, Japan’s Softbank said the PIF could contribute $45 billion to a new technology investment fund they are setting up in partnership.

Arab News