eXtra plans to acquire 51% of fashion retailer

09/06/2015 13:58 AST

eXtra (United Electronics Company) has entered into a Memorandum of Understanding (MOU) with Mohammad Yousuf Sager & Co., about its intention to acquire 51% of the company. The basic conditions of the MOU are that the offer will be considered exclusively for nine months after the date of signing, and that the signing by all parties of the final contracts for the transaction will take place within that period.

Mohammad Yousuf Sager & Co. is a regional retailer specialized in fashion, accessories and watches. Brands that the company represents in some countries include DKNY, Kenzo, Max Mara and Koton (fashion), as well as Jimmy Choo and Ecco (shoes), Trinket (accessories) and On Time (watches). The retailer operates in Saudi Arabia in addition to six other countries across the region, with more than 240 stores.

The signing of the MOU forms part of eXtra's strategic plans to enter more markets in the region, as well as a starting point for entering a variety of retail sectors, enhancing its market leadership and building on the growth it has experienced in the twelve years since its inception.

Commenting on the MOU, Abdullah Abdul Latif Al Fozan, Chairman of eXtra, said the company was accelerating its pace of growth to achieve its vision to become one of the Middle East's leading retail companies. He added that eXtra aimed to own and manage a wide range of stores, offering a variety of products, including leading domestic and international brands, managed by independent management with high levels of competency and expertise.

Al Fozan noted that eXtra continues to strengthen its leadership of the Kingdom's consumer electronics market, as well as that of the region, and that it continues to seek products and brands that create high profit margins in order to diversify its business activities and widen its geographical footprint.

Saudi Gazette