Following the recent acquisition of René Benko's stake in Globus by Thailand’s Central Group (as reported by finews.ch), Benko’s Signa package in the British department store chain Selfridges Group is changing hands. The two partners, Signa and Central Group, had jointly purchased the group in late 2021 for around £4 billion.

According to a report in the «NZZ» on Tuesday, the Saudi Public Investment Fund (PIF) is the new co-owner. Central Group retains 60 percent of the shares. PIF had already been a small investor in Selfridges, albeit to a much lesser extent.

Damage Control for Julius Bär

According to reports, Benko, facing financial pressures and without notifying his Thai partners, sold part of his Selfridges stake to the Saudis shortly after the acquisition. As a result, PIF has been involved in the negotiations from the start.

The sale is positive news for Bank Julius Bär. The bank is one of the largest creditors of Signa in the retail sector. According to the «NZZ», Julius Bär had loaned 200 million francs to Signa European Invest Holding, the Swiss-based entity holding stakes in Globus, Germany’s KaDeWe, and Selfridges. This is one-third of the total 606 million francs credit extended by the bank to the Signa Group.

100 Million francs expectetd

It remains unclear exactly how much of its exposure to Benko Julius Bär will recover, potentially aided by the sale of Selfridges. The article, citing insider sources, estimates a total of just under 100 million francs, though it may take some time before these funds are fully recovered. This figure corresponds to the amount previously reported by «Handelszeitung» at the end of August.

In its 2023 financial report, Julius Bär had written off the entire Signa loan as a precaution. Any recovery from the bankruptcy estate can now be recorded as an extraordinary gain.