Central Group has formed a strategic partnership with Saudi Arabia’s Public Investment Fund (PIF) to acquire Signa’s interest in Selfridges Group.
- The acquisition results in Central Group holding a 60% stake, while PIF owns 40% of Selfridges Group.
- Both companies will inject new capital to enhance Selfridges Group’s financial stability.
- The investment aims to drive future development and growth for the Selfridges Group.
- Signa faced financial difficulties, prompting restructuring and the eventual sale of its stake.
Thailand-based conglomerate Central Group, in a strategic partnership with Saudi Arabia’s Public Investment Fund (PIF), has successfully negotiated a buyout of Signa’s interest in Selfridges Group. This development marks a significant shift in ownership dynamics within the luxury retail space, with the Central Group securing a 60% stake while PIF will control the remaining 40%.
The partnership entails a fresh capital infusion from both Central Group and PIF, intended to fortify Selfridges Group’s financial position. This initiative is designed to support the luxury retailer’s future development ambitions, ensuring that it remains positioned for sustainable growth amid the evolving challenges of the retail sector.
Historically, Austrian property developer Signa Group collaborated with Central Group in a joint venture, acquiring Selfridges Group for £4 billion in 2022. However, Signa has recently experienced financial distress, leading to their engagement with restructuring experts in a bid to stabilize their economic standing.
Tos Chirathivat, Executive Chairman and CEO of Central Group, remarked on the new partnership, expressing confidence in the collaboration with PIF. He highlighted PIF’s successful global investment history alongside Central Group’s own capabilities in the luxury retail industry as key factors that will enable Selfridges Group to thrive for the benefit of its stakeholders.
Signa’s decision to divest its stake was largely influenced by its financial struggles, underscoring the importance of strategic partnerships in navigating financial crises within the retail industry.
The joint investment by Central Group and PIF underscores a commitment to the robust growth and financial stability of Selfridges Group.
