3 Minutes to Read (Reuters) – DUBAI, June 30 (Reuters) – According to three persons familiar with the situation, Saudi Arabia’s Public Investment Fund (PIF) is considering buying Depa Plc, a Dubai-listed interior design and speciality contractor, to fit-out hotels under development in the kingdom. If a deal is achieved, an offer would be made to Depa’s largest shareholders, and the company will be taken private, according to one of the individuals, who declined to be identified since the topic is private. When approached by Reuters on Tuesday, PIF, which manages $430 billion in assets, declined to comment. DEPA, which is traded on Nasdaq Dubai, did not comment right away. Saudi Arabia, the world’s largest oil exporter, is expanding its tourist business as part of Crown Prince Mohammed bin Salman, the kingdom’s de facto rulereconomic ,’s diversification push. The Burj Khalifa, the world’s tallest building, and Dubai’s Atlantis resort are two of Depa’s previous projects in Dubai. If Depa is taken private, it will be the third delisting from Dubai’s stock exchange this year, following the delistings of DXB Entertainments from the Dubai Financial Market and DP World from Nasdaq Dubai. According to Refinitiv statistics, Depa has a nearly 40% free float and a market capitalization of around $36 million. Its stock has dropped about 19% this year. Depa lost 484.8 million dirhams ($132 million) attributable to shareholders in 2020, after losing 409.1 million dirhams the year before. The insolvency of a large client and the restructure of its Asia unit were cited as reasons for the 2020 loss. Depa said it intended divestitures, including Vedder, a German interiors firm, as part of a plan that has already saved the company more than 160 million dirhams in fixed costs. Vedder specializes in luxury yacht and aircraft fit-outs, which could be of interest to PIF, according to two sources. Vedder did not respond to a request for comment right away. PIF plans to develop a new airport in Riyadh, according to Saudi media. PIF aims to expand its international portfolio while also investing domestically. According to industry data provider STR, Inc, the kingdom is expected to witness a 67 percent growth in room supply over the next three years, with a pipeline of 73,057 hotel rooms. A dollar is worth 3.6728 dirhams in the UAE. Hadeel Al Sayegh contributed reporting, and Edmund Blair edited the piece. Continue reading
