Spinneys 1961 Holding has agreed to acquire a further 20 per cent of its Saudi Arabian grocery business from partner Abdul Mohsen AbdulAziz Al Hokair Holding Group for SAR 18,000,000 in cash, bringing its total stake in the entity to 70 per cent.
Spinneys KSA, formally known as Al-Ma’kulat al-Fakhirah for Food Products, has been under Spinneys’ management control since it was established in 2022.
The entity is already fully consolidated into the company’s financial statements under IFRS 10, meaning the deal changes the economics more than it changes operational control. Completion is subject to regulatory approval, including clearance from the Saudi General Authority for Competition.
“Saudi Arabia is one of our most important growth markets, and increasing our shareholding to 70% reflects both our confidence in the opportunity and the strength of our partnership with Al Hokair. We have led the management of the business since Spinneys KSA was established in 2022, and this step aligns our economic interest with the role we already play. The Kingdom’s premium grocery segment continues to develop rapidly, supported by a young, growing and increasingly affluent population. The increased shareholding allows us to invest further in our fresh offering and bring the Spinneys experience to more customers across the country, while continuing to benefit from the local expertise of our partners,” Sunil Kumar, Chief Executive Officer at Spinneys said in a statement.
The transaction comes after Spinneys opened nine new stores in the UAE and two in Saudi Arabia over the past year.
The company has framed its Saudi strategy around the premium fresh food segment, where it sees room to grow as consumer spending in the Kingdom shifts upmarket.
