DUBAI (Reuters) – The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, will take a controlling stake in interior design and speciality contractor Depa Plc by agreeing to buy 150 million dirhams ($40.84 million) worth of new shares.
The deal will allow the PIF to own 55% of the company, but the $480 billion fund may also exercise the purchase of a warrant instrument that will give it additional shares and a stake of 62.5% if the warrant is exercised in up to 18 months, Depa said.
Reuters had reported last year PIF was in talks to buy a controlling stake in Depa, citing sources.
Saudi Arabia, the world’s biggest oil exporter, is developing its tourism industry as part of an economic diversification push by Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler.
Nasdaq Dubai-listed Depa’s past interior works projects included the Burj Khalifa, the world’s tallest skyscraper, and Dubai’s Atlantis resort.
($1 = 3.6726 UAE dirham)
(Reporting by Saeed Azhar; Editing by Kim Coghill)
