Seera Group Holding (Sera) entered into a non-binding agreement with the Saudi Public Investment Fund, stipulating the fund's investment in the Travel and Tourism Company wholly owned by Seera.
According to Arabiya Net, Serra clarified in a statement that the amount that the fund will invest, which includes the potential additional amount, is based on an initial total value of Al-Mosafer Tourism and related subsidiaries of 3.75 billion riyals before the investment amount is injected.
She added that paying the potential additional amount to Almosafer Tourism Company is conditional on achieving performance indicators for the fiscal years 2023 and 2024, which will be agreed upon between the two parties.
Serra explained that the fund wants to own 30% of Al-Mosafer Company for a total investment amount that may reach 1.55 billion riyals, which includes a possible additional amount of up to 386 million riyals to be paid to the Al-Mosafer Company to subscribe in new shares issued by Al-Mosafer Company.
Almosafer currently owns or intends to own, as part of the transaction, a number of Seera subsidiaries operating in the travel and tourism sector (travel services related to individuals, companies, destination management, Hajj and Umrah).
It is worth noting that the Saudi Public Investment Fund is close to buying a minority stake in the Kuwaiti Alshaya Group, which operates the Starbucks coffee chain.
Sources close to the negotiations of the sale deal revealed that the Public Investment Fund has emerged as the most likely candidate to buy the group that runs the Starbucks franchise in the Middle East, according to Bloomberg.
The sources said that the Public Investment Fund, whose assets amounted to $620 billion, is leading a group of investors vying for a stake in the company, and could reach an agreement in the coming weeks. One of the sources indicated that private equity companies may invest in Al-Shaya's debts along with the Public Investment Fund.
The Public Investment Fund invests in companies across a wide range of industries as part of a key role in diversifying the Saudi economy. In May, the fund established the Saudi Coffee Company, which will invest more than $300 million over the next ten years to raise the kingdom's annual coffee production to 2,500 tons from the current 300.
Starbucks' business will provide the Public Investment Fund with immediate access to approximately 1,700 branches in 14 markets spanning some of the largest emerging economies, from Saudi Arabia to Turkey.
