3 Minutes to Read DUBAI, United Arab Emirates (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 specialized contractor, to fit-out hotels under development in the kingdom. If a deal is struck, 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. In a statement to the bourse, Depa, which is listed on Nasdaq Dubai, said it was company policy not to comment on market speculations or media conjecture. Depa stated that it would continue to make required disclosures in order to keep the market informed on a timely manner as needed. 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. After losing 409.1 million dirhams the previous year, Depa recorded a loss attributable to shareholders of 484.8 million dirhams ($132 million) in 2020. The insolvency of a large client and the restructure of its Asia unit were cited as reasons for the 2020 loss. Depa announced divestitures, including Vedder, a German interiors firm, as part of a commitment to cut its fixed costs by more than 160 million dirhams. 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. (1 US dollar = 3.6728 UAE dirham) Hadeel Al Sayegh contributed reporting, while Edmund Blair and Robert Birsel edited the piece. Continue reading
