Kuwait, Aug 27 - Kuwait's Global Investment House has bought a 60 percent stake in Saudi retail chain Al Sawani Food and Industrial Supply Company, Global said on Wednesday.
The controlling stake was purchased by the bank's $3 billion private equity unit Global Buyout Fund, Kuwait's biggest investment bank by market value said in a statement.
"Global will own a 60 percent stake, while the Saudi Hafiz family will retain the rest," a spokeswoman for Global said, declining to disclose the value of the deal.
Global said it would increase the capital of Sawani by $100 million to fund retail acquisitions by the group which it said has over 550 outlets spread across 12 regional countries.
"We are very bullish on retailing. Fuelled by regional liquidity and a burgeoning young population, retail in the Gulf countries and the wider Middle East and North Africa region is poised for sizeable growth," Global's Senior Vice President Shailesh Dash said in the statement.
Sawani controls 11 percent of the retail market share in Saudi Arabia, and plans to open 150 new stores by acquiring more brands and entering new markets, the statement said.
"We are, as we speak, exploring several acquisition opportunities in the region to expand our presence," Sawani's Chief Executive Mohammad Hafiz said.
Global, which offers advisory services and buys into firms, raised $1.5 billion in May by selling global depositary receipts (GDRs) in London to tap growth in the Gulf benefiting from record oil prices.