Jul 30, 2015
El Corte Inglés: Qatari Sheikh could end up owning 15% of the Spanish company
Jul 30, 2015
Sheikh Hamad ben Jassem ben Jaber Al-Thani, the new partner of El Corte Español, will grant the Spanish retailer a 3-year loan worth €1 billion at an annual interest rate of 5.25%. To start with, the deal will award the new investor a 10% stake in the Spanish group, but the agreement is conditional upon results. Depending on the evolution of the business, Sheikh Hamad ben Jassem ben Jaber Al-Thani’s could end up with a 15% stake in the company.
The agreement El Corté Inglés plans to sign on Monday includes a possible rate increase of up to 7.5% depending on the achievement of the company’s goals, said El Economista. The retailer expects its EBITDA (earnings before interest, taxes, depreciation and amortisation) to grow 12% over the next five years.
Depending on the success of the business plan, the Qatari Sheikh will end up owning between 12.5% and 15.25% of the Spanish department store.
The deal with the new Qatari partner has prompted disagreements within El Corte Inglés’ board of directors. In fact, Corporación Ceslar and Cartera Mancor – which control a 20% stake in the Spanish company – voted against the arrangement.
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