Unless the deal should fall through at the very last moment, as of this summer French chain of luxury warehouses Le Printemps will be owned completely by a Qatari investment fund.
According to Reuters, the Qatari's Divine Investments did not only make a bid on the 70% of shares owned by Rreef (the real estate branch of Deutsche Bank), but also on the 30% owned by the Italian Borletti Group - even though just a month ago it seemed like the Qatari and the Italians were working together on a deal.
Borletti and Rreef bought the chain of warehouses in 2006 of PPR for 1.1 billion euro. According to Reuters the current bid would be worth two billion euro. And even apart from that, Borletti will not stay behind empty handed, because Divine Investment is proposing a seven year management deal with Borletti Management Group. BMG would be getting a strategic advising and an operation roll, says Reuters.
In exchange, BMG would receive 1% of sales of Le Printemps plus a performance bonus linked to sales growth. The contract also states the current management team can stay in position and there will also be no redundancies, in an effort to soothe the French unions who prefer a merger with Groupe Lafayette.