Global interior solutions group Depa has completed its $41mn (AED 150mn) transaction with Saudi Arabia’s Public Investment Fund (PIF).
According to a statement from the Nasdaq Dubai-listed firm, it announced on 11 February 2022 that it had entered into a definitive subscription agreement pursuant to which PIF would make a cash investment of AED 150mn ($40.8mn) in Depa in return for the allotment of 750mn new ordinary A shares (the “Subscription Shares”) and the issuance of warrants to subscribe for 272mn additional ordinary A shares (the “Transaction”).
Depa receives $41mn from PIF
Under the terms of the agreement, effective today, six individuals were nominated by PIF and appointed to the company’s Board as non-executive directors. Following the satisfaction of all conditions to completion, including the necessary shareholder approvals obtained at Depa’s Extraordinary General Meeting on 11 March 2022, the Subscription Shares were allotted and issued, the Warrants were issued to PIF, and the AED 150mn cash consideration was received by the design firm.
As a result of the allotment and issuance of the Subscription Shares, PIF holds approximately 54.5% ($40.8mn) of voting rights and the rights to distributions of Depa.
As part of the transaction, both the firms expect to be able to mutually benefit from the synergies afforded by the new relationship, including the design firm deploying its expertise in the luxury fit-out sector and contributing valuably to Saudi Arabia’s expanding luxury hospitality market, the company added in its statement.
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