Saudi Fund In Talks To Buy A Stake In "Lulu" Group
Two sources familiar with the matter said that the Saudi sovereign wealth fund, the Public Investment Fund, is in early-stage talks to buy a stake in the global Lulu Group of retail chains.
The two sources added that talks are taking place with the Indian-born businessman Yusuf Ali, who founded the UAE-based Lulu, one of the largest chains in the Gulf region.
One of the sources said that discussions between the fund and Lulu began four to six weeks ago.
It was not immediately clear how much of the stake the PIF was seeking to buy as the talks are at an early stage, or whether the talks will lead to a final process.
The LuLu Group operates malls, large retail stores and other activities that generate $ 7.4 billion annually, according to its website.
The group operates operations in Saudi Arabia and other Gulf countries, Egypt, India, Indonesia and Malaysia.
The Public Investment Fund, which manages $ 360 billion in assets, declined to comment.
He said in.
Nandakumar, Director of Marketing and Communications at Lulu Group, in an email response: "As a policy we never comment on market speculation and media rumors."
Two sources familiar with the talks said the holding company ADQ had invested $ 1 billion in Lulu this year.
The company did not respond to a Reuters request for comment.
The Saudi government has sought to expand the retail sector in the Kingdom as part of a drive to create one million jobs by this year.
The Public Investment Fund invested $ 500 million in the e-commerce company Noon, which soon after began its operations in the Kingdom.
He also indirectly invested in the initial public offering of the Arabian Centers Company, which runs Saudi shopping centers.
Reliance has approached the fund to buy a stake in Reliance Industries' retail unit, owned by Indian billionaire Mukesh Ambani.
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