Al Futtaim to pay Dh1.6b for 88% stake in Robinson

Dubai: Al Futtaim group, a leading UAE family owned business group with interests in trading, real estate and financial services, has acquired an 88 per cent stake in Robinson, a Singapore-based chain.

Al Futtaim is offering Dh1.6 billion (S$620 million) for the firm and expects to complete the acquisition in a few weeks.

"We expect to acquire about 95 per cent of the company and eventually de-list it from the Singapore Stock Exchange," said GTN Heine, Group Director of Al Futtaim Group.

The UAE group which started acquiring Robinson shares at S$6.50 raised the offer to $S7.2 on April 3. The cash bid was made through Al Futtaim Global Private Limited, an investment arm of the group.

The funding for the purchase is arranged through Standard Chartered. Eventually the group will take 30 to 40 per cent of the funding on its books while about 60 to 70 per cent will be raised through a loan or a bond issue.

Al Futtaim group plans to expand further in other South East Asian markets such as Malaysia and Indonesia.

"This acquisition gives us a foothold in Malaysia while Indonesia which is about an hour's flying distance from Singapore is very much on our plans for the region," said James McCallum, Group Director, retail.

The group said yesterday that it has no intention to go for an initial public offering in the near future.

"We are well funded through our group resources and there is no need for a public funding in the near future," he said.