Primefin €1 billion acquisition of stake in El Corte Inglés

Overview:

• PrimeFin—a Luxco indirectly fully owned by Sheikh Hamad bin Jassim bin Jabr Al-Thani—made a €1 billion acquisition of up to 15.25% of the shares of El Corte Ingles (ECI), a leading Spanish group of department stores.
• The acquisition was carried out through a mandatory convertible loan structure due 2018. The loan principal and the loan interest will be payable at the maturity date in shares of ECI at a fixed price, which will give rise to a stake by the investor of between 10% and 15.25% of the share capital and voting rights in ECI.
• The deal is one of the most important in the Spanish retail sector in recent history and will value the group at €10 billion as Al-Thani becomes a board member in the Spanish corporation.
• Former Qatari Prime Minister Al-Thani is a member of Qatar’s Royal Family and one of the top five wealthiest investors in the world.

Adam Majeed - Regional editor