RIYADH: Future Tech Retail, a unit of BinDawood Holding, has acquired a 62-percent stake in e-commerce platform operator International Applications Trading Co. for SR108 million ($29 million).
A fully owned subsidiary of Saudi retailer BinDawood, Future Tech signed the deal with Amwaj Real Estate Co. and First Commercial Application Co., to acquire the stake, a bourse filing showed.
Both Amwaj and First Commercial, with 42 percent and 20 percent, respectively, have stakes in IATC, which develops and operates online e-commerce platforms and online mobile applications comprises
“The acquisition of a majority stake in IATC is a major step towards enhancing our e-commerce offering and strengthening our omnichannel presence – enabling BinDawood Holding to control the future growth of its business in an increasingly digitally-connected world,” said CEO Ahmad BinDawood.
Ahmad BinDawood
The move is in line with the company’s long-term objectives to become one of the leading grocery retail operators of hypermarkets and supermarkets in the Kingdom. The company expects this deal to have a positive impact on its financials.
On a broader scale, this comes amid expectations from Euromonitor that Saudi Arabia’s grocery retail market will grow at a CAGR of 2.8 percent between 2020 and 2027 to hit SR177.5 billion, the company said in the statement.
