Selfridges circled by Chinese and Middle Eastern investors
Selfridges is being circled by Chinese and Middle Eastern investors as the financial struggles of its Austrian co-owner Signa Holdings seem to have triggered a bidding war.
The Times reported the department store’s other co-owner, Thai conglomerate Central Group, is interested in buying Signa’s stake in the business with another partner and is said to be in talks with sovereign wealth funds and tycoons.
The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, which supported Signa’s Selfridges bid, is among businesses said to be in the running.
Harrods owner Qatar Investment Authority is also said to be interested, with interest reignited after its initial bid three years ago when the billionaire Weston Family put the luxury retail chain up for sale.
Sources told the newspaper Central was well-resourced and not reliant on funding.
“It prefers joint ventures with other companies because it believes they can “leverage [its] capabilities,” they said.
Signa also owns the Chrysler building in New York and a host of department stores in Ireland.
The business, which was founded by the now bankrupt Rene Benko, called in restructuring experts last November after it admitted it could not find the “necessary liquidity”.
Benko suffered a number of professional and personal setbacks, including having his offices raided by the Austrian police. Benko has denied wrongdoing and was not charged.
The company acquired Selfridges as part of a joint venture two years ago in a £4bn deal with Thai conglomerate Central Group, which put the two firms in debt of roughly £1.7bn.
At the time, the business was split evenly with both parties having an even share of its operating company and a property company.
However, Central now owns 60 per cent of the operating arm, but the property division remains an equal share.
City A.M. has contacted Central Group, Signa Holdings and The Public Investment Fund for comment.