| PARIS, March 29
PARIS, March 29 Qatari investors are set to buy
100 percent of French department store Printemps, official
documents seen by Reuters show.
The tourist shopping hot spot has been the target of a joint
bid by Italian businessman Maurizio Borletti allied with Qatari
investors, but is also coveted by French retail arch-rival
Through Luxembourg-based company Divine Investments, Qatari
investors are offering to buy Borletti Group's 30 percent stake
in Printemps as well as the 70 percent holding owned by Deutsche
Bank's real estate investment unit RREEF, according
to official documents seen by Reuters.
When Borletti said last month it was in exclusive talks to
acquire Printemps together with Qatari investors, it said it did
not wish to sell its stake in the department store.
On Friday, Borletti Group declined to comment on the matter.
Borletti and RREEF bought Printemps in 2006 from French
luxury group PPR for 1.1 billion euros ($1.41
Printemps now has 16 stores and employs about 4,000. Its
2011-12 turnover rose 13 percent to 1.45 billion euros.
A source close to the talks told Reuters last month that
RREEF and the Borletti Group were in exclusive talks to sell
Printemps to Qatari investors for up to 2 billion euros ($2.57
Divine's offer for Printemps includes a seven-year
management contract with Borletti Management Group (BMG). It
centres on "the provision of advice of a strategic and
operational nature regarding the implementation of the business
plan," official documents seen by Reuters said.
Terms of the contract were not disclosed, but according to
sources close to the matter, BMG's management fee would be equal
to 1 percent of Printemps's revenues. On top of it, would come a
performance bonus linked to the department store's sales growth.
The contract also stipulates that the current management
team would remain in place and jobs would be preserved.
The deal is set to be closed by the summer.
($1 = 0.7788 euros)
(Writing by Astrid Wendlandt; Editing by Leslie Gevirtz)