Saudi investment fund proposes to increase stake in Selfridges to 50 percent

Saudi Arabia Public Investment Fund (PIF), an investor in Selfridges, has reportedly proposed to increase its stake in the luxury department store from its current 10 percent to 50 percent.

The offer follows the collapse of Selfridges’ former co-owner Signa, for which PIF is a creditor. As such, the offer of one million pounds for the stake, which had initially been reported on by Bloomberg citing documents, would reduce PIF’s claims against Signa by 52 million pounds.

As part of the deal, Bangkok Banks, a loan provider for Selfridges’ Oxford Circus location, is believed to have also agreed to waive around 618 million pounds in claims.

PIF is understood to have made a cash offer for the stake, which, if accepted, would bring an end to the uncertainty surrounding Selfridges’ ownership that has been hanging over the firm since Signa’s administration filing earlier this year.

While Signa still retains 40 percent of Selfridges’ holdings, the final 50 percent is owned by Thai retail conglomerate Central Group, which had purchased the retailer alongside Signa back in 2021.

Following the insolvency, however, Central had gained control over Selfridges after exercising “its right to convert a loan provided by one of its subsidiaries”, leading to initial speculation that the firm was eyeing either a full takeover of certain assets or a new partner.