A Bahrain-based Islamic investment firm has announced the completion of a deal to acquire 49 percent of Saudi fast food chain Hungry Bunny.
Tharawat Investment House said it has acquired the stake in the Hungry Bunny brand, which is owned by Mohamed bin Husain Al Dosary, and is registered in the US, Europe, and Middle East.
Al Dosary said the company would look to launch an initial public offering on the Saudi bourse in the next four years.
The chain owns 38 branches which operate throughout Saudi Arabia, Bahrain, Kuwait and Oman under worldwide franchise agreements.
Arif Mohamed Al Alawi, Tharawat's CEO, said: "The company is currently building a high-tech facility using the latest European technological standards for processing different kinds of meat to be fully dedicated for its own brand and to serve other shopping centres.
"The annual rate of return of this investment is expected to reach 25 percent per annum with a forecast to pay eight percent dividends to the investors in every year."
The Hungry Bunny employs around 500 people with 2011 sales totalling more than SR52m.
Al Alawi added: "Saudi Arabia's fast food outlet sector is growing at an annual rate of five percent and such growth is anticipated to continue at the same rate during the next five years."
Mohamed bin Husain Al Dosary, who owns 51 percent of the Hungry Bunny restaurant chain, expressed his "happiness and optimism" following the acquisition, adding that the deal aims to take the company to "new broader horizons".For all the latest GCC news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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