Saudi Arabia’s Alhokair acquires a stake in an e-commerce platform

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Saudi retail company Fawaz Abdulaziz Alhokair said on Wednesday that it has agreed to buy a minority stake in the Fogacloset e-commerce platform, seeking to boost its online presence.
Al-Hokair added that it would acquire 25.5 percent of the capital of the British-based e-commerce company, while financing the deal worth 68.9 million riyals ($ 18.4 million) from its resources.
Al-Hokair said in a statement to the stock exchange, “The deal will allow Al-Hokair to gain access to an international website that has a strong position and presence in the Middle East and Saudi Arabia to enhance its brands and bring it closer to its customers.”
The Vogacloset website says the e-commerce company supplies “fashion buffs” in the Middle East.
The Arabian Centers Company, the owner and operator of shopping malls, which Al Hokair established and split during the listing on the stock market in 2019, will also acquire shares in Fogacloset as part of the deal.
Shopping center operators in the Gulf region postpone the establishment of mega projects in light of the severe impact of the Covid-19 pandemic and the drop in oil prices on the retail sector, which is based on its development on huge centers serving tourists and wealthy citizens.
Al-Hokair said that FogaCloset may eventually merge with a joint venture established by Al-Hokair and Arabian Centers Corporation to help build the two Saudi multi-channel expertise for clients and merchants. (Reuters)




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