Depa PLC (“Depa”), the leading global interior solutions group, announces that it has completed its proposed transaction with the Public Investment Fund (“PIF”).
Depa 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 150,000,000 in Depa in return for the allotment of 750,000,000 new ordinary A shares (the “Subscription Shares”) and the issuance of warrants to subscribe for 272,829,158 additional ordinary A shares (the “Transaction”).
Additionally, six individuals were nominated by PIF and appointed to the Depa Board as non-executive directors with effect from today.
Further information in relation to the Transaction, including biographies of six PIF-nominated directors, was included in Depa’s letter to its shareholders dated 24 February 2022.
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 150,000,000 cash consideration was received by Depa.
As a result of the allotment and issuance of the Subscription Shares, PIF holds approximately 54.5% of voting rights and the rights to distributions of Depa.
As part of the transaction, Depa and PIF expect to be able to mutually benefit from the synergies afforded by the new relationship, including Depa deploying its expertise in the luxury fit-out sector and contributing valuably to Saudi Arabia’s expanding luxury hospitality market.
Abdullah Al Mazrui, Non-executive Chairman, commented: “This is an important milestone for the Group which provides the necessary funding to Depa to repair its balance sheet, fund its expansion in Saudi Arabia, a market that holds tremendous long-term opportunity, and become an incubator for Saudi talent. We are delighted to welcome the new Directors to Depa’s board. Their wealth of experience and expertise will benefit Depa with its ambitious growth plans. The board looks forward to supporting Depa’s experienced and accomplished incumbent management team to execute these growth aspirations.”
Tel: + 971 4 821 6666
Kevin Lewis, Group Chief Executive Officer
Steven Salo, Group Chief Financial Officer
For more information, please refer to the corporate website:
Notes to editors:
Depa is a strategic management company specialising in global interior solutions. Depa’s key business units hold leading positions in their respective markets: Vedder, Depa Interiors and the Deco Group. Employing thousands of people worldwide, the Group’s operations are centred on two regional hubs: Europe and the Middle East.
Depa’s mission, shared by each of its key business units, is to deliver sustainability, profitability and performance for its clients, shareholders and employees. The Group’s five core values are integral to everything Depa does: transparency, integrity, accountability, professionalism and exceptional service.
Depa PLC is listed on the Nasdaq Dubai (DEPA: DU) and is headquartered in Dubai, United Arab Emirates.
PIF is one of the largest and most impactful sovereign wealth funds in the world. Since 2015, when the Board was reconstituted and oversight transferred to the Council of Economic and Development Affairs, the Fund’s board of directors has been chaired by HRH Prince Mohammed bin Salman Al Saud, Crown Prince, Deputy Prime Minister and Chairman of the Council for Economic and Development Affairs. By the end of Q4 2021, PIF’s Assets under Management amounted to more than 1.8 trillion Saudi riyals. The Fund plays a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the global economy. Since 2017, the Fund has established 47 companies and created, directly and indirectly, more than 450,000 jobs as at the end of 2021.
PIF is building a diversified portfolio by entering into attractive and long-term investment opportunities in 13 strategic sectors in Saudi Arabia and globally. The Fund's strategy, as set out in the PIF Program 2021-2025 - one of the Vision 2030 realization programs - aims to enable many promising sectors and contribute to increasing local content by creating partnerships with the private sector, in addition to injecting at least 150 billion riyals annually into the local economy. PIF works to transfer technologies and localize knowledge to build a prosperous and sustainable economy in Saudi Arabia. As the investment arm of Saudi Arabia, the Fund looks to make unique investments, and is building strategic alliances and partnerships with prestigious international institutions and organizations, which contribute to achieving real long-term value for the Kingdom in line with the objectives of Vision 2030. PIF has also created an operational governance model that reflects its main tasks and objectives, in line with best international practices. Applying this model of governance enhances the level of transparency and effectiveness in decision-making and future progress.
More information about PIF can be found at: www.pif.gov.sa
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This document may contain certain 'forward looking statements' with respect to Depa's financial condition, results of operations and business and certain of Depa's plans and objectives with respect to these items. By their very nature, forward looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events, and depend on circumstances, which may occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements. All written or verbal forward looking statements, whether made in this document or made subsequently, which are attributable to Depa or any other member of the Group or persons acting on their behalf are expressly qualified on this basis. Depa does not intend to update any such forward looking statements.