Saudi Arabia’s Public Investment Fund is set to become a minority partner in UK department-store chain Selfridges after buying out the position of the now-insolvent Signa Group, Bloomberg News reported. The PIF will take a 40% stake in both the property and operating businesses of Selfridges, according to an emailed statement from current co-owner Central Group. The Thai retail conglomerate will own a 60% stake, with the deal including new investment from both shareholders to shore up Selfridges’ financial position.
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North Africa/Middle East
Shelly Lotan’s food-tech start-up in northern Israel was just a year old when Hezbollah started firing missiles across the border last October and the government advised everyone in the area to evacuate, The Washington Post reported. Two of her five employees were called up to serve in the military. Those that remained moved the company’s office to one of her employee’s parents’ basement. Investments slowed to a trickle.
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At the end of 2022, the Selina hospitality chain went public on Wall Street through a merger with a Special Purpose Acquisition Company (SPAC) at a value of $1.2 billion. Founded and managed by Israelis Daniel Rudasevski and Rafi Museri, Selina was one of the hottest brands in the market, presenting investors with plans for a novel hospitality experience. However, its performance did not meet expectations, and within less than two years, the chain fell into insolvency, Calcalistech.com reported. By the end of August, all its assets were sold.
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Egypt kept interest rates at a record high as it weighs the effects of a new round of subsidy cuts on inflation that’s been slowing for five straight months, Bloomberg News reported. The central bank maintained its deposit rate at 27.25% and the lending rate at 28.25%, its Monetary Policy Committee said Thursday in a statement. The decision was correctly predicted by six of nine economists surveyed by Bloomberg. The others, including Goldman Sachs Group Inc., expected a cut of 100 basis points.
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Lebanon charged its embattled former central bank governor Wednesday with the embezzlement of $42 million, three judicial officials told The Associated Press. Riad Salameh was charged by the Financial Public Prosecution a day after he was detained following an interrogation by Lebanon's top public prosecutor over several alleged financial crimes. His case has been transferred to an investigating judge, the officials added, who spoke on condition of anonymity in line with regulations.
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Israel’s central bank left interest rates unchanged, seeking to balance the impact of rising inflation against weak growth as uncertainty surrounds fiscal policy, Bloomberg News reported. The monetary committee kept its benchmark rate at 4.5% on Wednesday for a fifth straight meeting. In a statement accompanying the decision, policymakers largely repeated previous guidance, saying the focus should be on stabilizing markets, controlling price rises and supporting economic activity. Inflation has been on the rise, mostly linked to the war against Hamas.
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Lusix, the synthetic diamond company founded by Benny Landa, is on the brink of filing for insolvency. The company has informed its creditors of its intention to do so, though the timing remains uncertain, YNetNews.com reported. Sources have told Calcalist that Lusix informed its shareholders last week that it urgently needs to raise $15 million to continue operations. Without this capital infusion, the company will likely become insolvent. Although some investors have considered providing additional funds, it is not believed that this has materialized.
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Defense company Paramount filed for bankruptcy in the U.S. after suffering defeat in a long-running business dispute, Bloomberg reported. The United Arab Emirates-based company, founded by Ivor Ichikowitz in South Africa, filed for chapter 11 Thursday in Delaware. It listed assets of between $500 million and $1 billion and liabilities of between $100 million and $500 million in its bankruptcy petition.
The owners of consumer delivery companies are worried about going bankrupt and falling into more debt due to the ill-considered decisions of some government agencies and the false information that some officials provide to the concerned ministers, the Arab Times Online reported. In a meeting held Saturday, the owners called for a thorough review of the decisions and circulars issued recently, which have negatively affected their commercial activity.