Saudi fund acquires Signa stake in British department store chain
Published: Tuesday, Oct 8th 2024, 11:10
Back to Live Feed
The sale of the failed Signa Group's department store empire continues to make progress. Following the takeover of Globus by the Central Group, a Saudi sovereign wealth fund is now acquiring Signa's stake in the British luxury department store chain Selfridges. Bank Julius Baer can hope for the repayment of a large sum in the millions.
With the takeover of Signa's stake in the Selfridges Group, the Saudi "Public Investment Fund" (PIF) will hold a 40 percent share, the Central Group announced on Tuesday night. The Thai group will hold a 60 percent majority stake in Selfridges as part of a partnership. The ownership structure applies to both the operating companies and the real estate companies of the department store group.
Solution for another department store
The Central Group can thus announce a solution for another luxury department store chain in which it was involved with the collapsed Signa Group of Austrian investor René Benko. At the end of September, the Thai group announced the purchase of Signa's share of Globus' operating business, making it the sole owner of the Swiss department store chain.
In June 2024, the Thai company had already completely taken over the business operations of the German department stores KaDeWe, Oberpollinger and Alsterhaus.
Bear could hope for 100 million
The Saudis' investment in Selfridges should also be good news for those responsible at Bank Julius Baer. The bank had granted the Signa Group loans totaling CHF 606 million, which were secured by collateral "in connection with commercial real estate and luxury retail".
Julius Baer had never officially confirmed the identity of Signa as the borrower. However, the bank had already announced in November 2023 that the exposure at risk comprised three loans to various units of a "European conglomerate". According to an article in the "Neue Zürcher Zeitung" (NZZ), a third of the total Signa loans, i.e. around CHF 200 million, are likely to have gone to "Signa European Invest Holding", which holds the stakes in Globus, KaDeWe and Selfridges.
According to the NZZ article, insiders assume that the Zurich-based private bank could recover almost CHF 100 million from this. As Julius Baer had already written off the entire Signa loans in the 2023 financial statements, the amount would be recognized as an extraordinary gain. A Baer spokeswoman declined to comment on the report when asked.
Probate proceedings last
However, the transactions are not yet formally concluded with the signing, as the NZZ emphasizes. This is because the purchases of the shares in Globus and Selfridges are realizations as part of a restructuring process.
The administrators would now have to propose a composition agreement to the creditors, which would probably also include a write-off of some of the claims. However, according to the newspaper, it is likely to be months before such an agreement is reached.
©Keystone/SDA
English 
German 
French 
Spanish 
Arabic