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Wednesday, 22 February 2012

UPDATE 1-Citi arm, Dubai PE firm in $100 mln Saudi deal | Agricultural Commodities | Reuters

Citigroup's venture capital arm and Dubai-based Levant Capital have bought a $100 million controlling stake in Saudi Arabian supermarket chain Al-Raya For Foodstuff Co Ltd., lured by growth prospects in the kingdom's consumer sector.

Al-Raya, based in Jeddah, operates 25 supermarkets across 14 cities in Saudi Arabia, and had posted sales of 800 million riyals ($213 million) in 2011, a joint statement from Citi Venture Capital International (CVCI) and Levant said.

"The transaction, valued at $100 million, presents an opportunity for Levant Capital and CVCI to capitalize on the growth in consumer-driven demand and the increasingly attractive middle income segment of the gulf region's largest economy," it said, adding that the deal closed on Tuesday.