PIF Selfridges Takeover

International acquisitions remain a significant part of the strategy for capital rich countries/individuals such as KSA, Qatar (Harrods), UAE (Man City). Yesterday’s news that Saudi Arabia’s sovereign wealth fund (PIF) is the private financial backer of the £4bn takeover of Selfridges is no surprise.

The Kingdom’s £500bn Public Investment Fund acquired an interest in the luxury department store last August through Austrian property firm Signa Holding, The Telegraph reported.

PIF backed the Signa fund that acquired a 50pc stake in Selfridges last August. Signa swooped in equal partnership with the Thai retailer Central Group. Saudi Arabian finance represented a minority of Signa’s contribution.

The pair won an auction launched by the Weston family, owners of Selfridges since 2003, prompted by the death of Galen Weston, the patriarch. Signa and Central’s £4bn bid came out ahead of competition from Qatar’s sovereign wealth fund.

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