By Sarah Townsend
Deal to acquire 51 percent of Mohammad Yousuf Sager & Co is expected to complete by March 2016
Saudi Arabia’s eXtra (United Electronics Company) has announced its intention to buy 51 percent of fashion and accessories retailer Mohammad Yousuf Sager & Co.
eXtra said it has signed a Memorandum of Understanding (MoU) with Mohammad Yousuf Sager & Co to acquire the 51 percent stake subject to a nine-month exclusivity period starting on Monday June 8.
The consumer electronics retailer said the deal was part of wider plans to enter more retail sectors and more markets across the region.
Mohammad Yousuf Sager & Co is a pan-GCC retail giant that represents brands including DKNY, Kenzo, Max Mara and Koton, as well as Jimmy Choo and Ecco, Trinket and On Time.
The retailer operates in Saudi Arabia and six other countries across the region, and has more than 240 stores.
eXtra chairman Abdullah Abdul Latif Al Fozan said the company was “accelerating its pace of growth to achieve its vision to become one of the Middle East’s leading retail companies”. It aims to own and manage “a wide range of stores including leading domestic and international brands”.
However, eXtra will continue to “strengthen its leadership of the region’s consumer electronics market by seeking products and brands that create high profit margins,” Al Fozan added.