Move will make the retailing and restaurants start-up operationally profitable in 2015
Marka, a retailing and restaurants start-up, has agreed to buy a sporting goods retail firm from state-owned conglomerate Dubai World for AED220 million ($60 million), in a move that will make Marka operationally profitable in 2015, it said on Sunday.
The acquisition of Retailcorp, a subsidiary of Dubai World's investment unit Istithmar World, will be funded by the Marka's own funds and bank facilities, said the United Arab Emirates-based company, which listed in Dubai earlier this year.
The deal will give Marka a network of 15 sporting goods outlets across the UAE, and Marka aims to expand the chain across the country and the region, it added.
Dubai World, which signed a $25 billion debt restructuring agreement in 2011 after it was hit hard by the global financial crisis, has gradually been selling off assets to help it meet the terms of the restructuring.For all the latest banking and finance 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.