Saudi sovereign fund buys into fast food

KFCSaudi Arabia’s Public Investment Fund will buy a 50% stake in Adeptio, a Gulf investment firm that is the majority owner of a major food company in the region.

The transaction, “forms part of the Public Investment Fund’s efforts to increase investment in non-oil sectors”, said the fund in a statement.

The Public Investment Fund is seen as a critical part of the country’s Vision 2030 plan, which aims to reorganise the Saudi economy to be less dependent on petrochemicals. The country says it will increase the fund’s assets to $2 trillion.

Kuwait Food, also known as Americana, owns the Middle East franchises for KFC and Pizza Hut and also produces consumer foods. Adeptio, run by UAE businessman Mohamed Alabbar, bought a 67% share in Kuwait Food for $2.35 billion in October.

“Following the acquisition of this stake in Americana, Adeptio will launch a mandatory tender offer for the remaining shares in Americana held by public shareholders,” said the Saudi fund in a statement.

©2016 funds global mena

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