(MENAFN- Mid-East.Info) PIF will become a shareholder with 30% ownership of Tamimi Markets by way of a capital increase and subscription of new shares Investment is expected to accelerate Tamimi Markets' ambitions to become a national champion and major regional grocery chain Investment aligns with PIF's strategy to enable the private sector, further strengthening Saudi presence in a critical sector Since 2017, PIF has established 77 companies and has created more than half a million direct and indirect jobs.
RIYADH, KSA – The Public Investment Fund (“PIF”) announced today the signing of a share subscription agreement (the“Agreement”) to invest in Tamimi Markets Company LLC (“Tamimi Markets” or“the Company”), one of Saudi Arabia's leading grocery store chains, by way of a capital increase and subscription for new shares. The signing of this Agreement aligns with PIF's strategy to enable the private sector and create Saudi national champions.
Pursuant to the Agreement, PIF will become a shareholder with a 30% stake in the entire share capital of Tamimi Markets, after obtaining approvals from the relevant authorities and satisfying certain conditions under the Agreement.
PIF owns several strategic investments in the consumer goods and retail sector, such as Noon.com, the leading Middle East online shopping platform, Halal Products Development Company, and Americana Restaurants International PLC. The investment in Tamimi Markets is in line with PIF's strategy to develop key sectors in Saudi Arabia. Since 2017, PIF has established 77 companies and has generated more than half a million direct and indirect jobs.
This investment aims to enable Tamimi Markets to realize its full potential, transforming it from one of the leading national grocery chains to a major regional chain. 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 (IPO).
The investment aims to further strengthen Saudi presence in a critical sector where Tamimi Markets and other local grocery chains can benefit from positive long-term dynamics. It will also aim to facilitate access to the growing online grocery market and the establishment of international sourcing centers to improve profitability and product offerings, benefitting the private sector by strengthening the consumer goods and retail ecosystem and leading to a greater choice of products for consumers.
Majed AlAssaf, Head of Consumer Goods and Retail, MENA Investments Division at PIF, 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 capitalize on positive market demand. This partnership is expected to contribute to the expansion of Tamimi Markets' operations and product offering, accelerating its regional growth plans and benefiting consumers through greater choice. Our investment aligns with PIF's strategy to create Saudi national champions in key sectors that contribute to the diversification of the economy.”
Tariq AlTamimi, Chairman of Tamimi Holding, said:“PIF's partnership is a significant vote of confidence in Tamimi Markets and a step forward for the Company, as we look to implement our ambitious growth plans. This partnership will enable us to accelerate and expand our store network across the region, optimizing the significant growth that is expected in this market over the next few years.''
Tamimi Markets has a strong track record over a period of more than 40 years in Saudi Arabia, with over 100 stores and five distribution centers, offering a wide variety of local and international products, including many brands exclusive to Tamimi.
ABOUT PIF:
The Public Investment Fund (PIF) is one of the largest and most impactful sovereign wealth funds in the world. Since 2015, when the Board was reconstituted and oversight transferred to the Council of Economic and Development Affairs, the Fund's board of directors has been chaired by His Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz, Prime Minister, Chairman of the Council of Economic and Development Affairs, and Chairman of the Public Investment Fund. PIF a leading role in advancing Saudi Arabia's economic transformation and diversification, as well as contributing to shaping the future of the global economy. Since 2017, PIF has established 77 companies and created, directly and indirectly, more than 500,000 jobs as at the end of 2021.
PIF is building a diversified portfolio by entering into attractive and long-term investment opportunities in 13 strategic sectors in Saudi Arabia and globally. PIF's strategy, as set out in the PIF Program 2021-2025 – one of the Vision 2030 realization programs – aims to enable many promising sectors and contribute to increasing local content by creating partnerships with the private sector, in addition to injecting at least 150 billion riyals annually into the local economy. PIF works to transfer technologies and localize knowledge to build a prosperous and sustainable economy domestically. As the investment arm Saudi Arabia, PIF looks to make unique investments, and is building strategic alliances and partnerships with prestigious international institutions and organizations, which contribute to achieving real long-term value for Saudi Arabia, in line with the objectives of Vision 2030. PIF has also created an operational governance model that reflects its main tasks and objectives, in line with best international practices. Applying this model of governance enhances the level of transparency and effectiveness in decision-making and future progress.
About Tamimi Markets Company:
Tamimi Markets is a leading chain of supermarkets in Saudi Arabia and Bahrain. With over 107 branches, the spacious and well organized stores feature a wide variety of international brands as well as local favorites, all at competitive prices.
Tamimi Markets strives to offer the best in customer service and provides a superior shopping experience through its stylishly modern stores.
Tamimi Markets departments include its innovative Healthy Living range providing organic and natural, gluten-free, and environmentally friendly products, with the latest in Healthy trends.
In 2013, Tamimi Markets was selected among the Top 100 Saudi Brands, according to a survey conducted by Ipsos, the global marketing research company. It is a promotional partner in the“Made in Saudi program 2022”, and it has been awarded the 'Fasted Growing Supermarket chain in Saudi Arabia' in 2022 by the Global Brands Magazine of the UK, in addition to being awarded the“Best Work Environment” certificate by the Great Place to Work organization recognizing the high quality standards and ethical practices.
Tamimi Markets vision includes many key projects from food security to developing talent and growing job opportunities with focus on delivering best practices in customer centricity in the retail industry.