Harrods still on Kuwait's radar

The Kuwaiti company behind the recent US$925m acquisition of luxury UK carmaker Aston Martin has "not ruled out" a bid for exclusive London department store Harrods and is expected to make further UK acquisitions in the "very near future", its deputy CEO has exclusively revealed to Arabian Business.

Amr Abu El Seoud, the deputy chief executive of The Investment Dar (TID), the largest investment company in Kuwait and the third largest in the region, told Arabian Business that he was flying to London "once a week" to "keep a close eye" on any UK brand assets that "might become available".

Asked whether he would consider a bid for Mohammed Al Fayed's Harrods he said: "As long as the acquisition in question comes under Sharia-compliant law then we are ruling nothing out".

TID, Arabian Business's investment company of the year at the Kuwait awards 2007, has US$15bn under management (currently invested) in a range of businesses including the Bahrain Islamic Bank, has over US$1bn in shareholder equity and total assets of US$3.6bn. The company carries out all its transactions under Sharia-compliant law.

El Seoud said that TID had been linked with several businesses around the world but that it was "focusing on UK assets", particularly in the financial services space.

"Anything that is investment orientated we will look at. We don't buy assets for short-term gain, we buy them for wise investments and as long as it does not conflict with Sharia law then we will look at it seriously. Nothing is ruled out," he said.

"We like UK assets. It is one of the safest places to do business and is the financial capital of the world."

The Kuwaiti business recently completed a US$925m consortium buyout of Aston Martin from car manufacturing giant Ford taking a 50% share in the business. Fellow Kuwaiti investment company and major TID shareholder Adeem Investment alongside other undisclosed US, British and Kuwaiti parties now hold 28.5%, car giant Ford still maintains 15% of Aston shares, while consortium leader and BAR racing boss David Richards and Texan investment banker John Sinders hold the remaining 9%.

"We get the majority of our finances from internal resources and then later on after we have completed the deal arrange part acquisition finance. This is part debt and part equity. Around US$570m (300 Pounds sterling) was equity and around US$390m (200 Pounds sterling) of the Aston deal was debt," El Seoud said.

"Aston Martin is now a debt-free company and we will now concentrate on Aston until all our goals have been achieved and completed."

German bank West LB was appointed to arrange around US$390m of quasi-debt finance to back the consortium's leveraged buy out (LBO), but only that which accords with the Koran's opposition to interest and speculation. The deal is thought to be the first time Islamic finance has been used for an LBO in the UK. A growing number of Gulf investors are choosing to arrange deals with an Islamic financial focus.

El Seoud said that TID's goals for Aston Martin would be to maintain high production levels of around 7000 cars a year, then grow the business and "enjoy the operating profits".

"We are not speculators, we want to grow the business, make it a success and make money. We want to make between 20 to 50% operating profit and enjoy it.

"The work at Aston Martin has just begun and we are flying every week to London to meet with the management and to put in place everything the company needs to grow," he added.

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