Dubai International Capital (DIC) is in negotiations to buy luxury brand retailer Rivoli Group, according to a regional online information portal. DIC - part of Dubai Holding - is hoping to tie up a deal with Rivoli owners Adel Zarouni and Ramesh Prabhakar within weeks - less than a month after its bid for Liverpool Football Club ended, ArabianBusiness.com reported.
When contacted by Emirates Today, Ramesh Prabhakar, managing partner of Rivoli Group, refused to confirm or deny the story. He only said: "Nobody at Rivoli is in a position to comment." Calls to Sameer Al Ansari, DIC chief, also went unanswered.
The deal will be worth "several hundred million dollars - probably over the $500 million (Dh1,835m) mark," according to unnamed sources quoted by ArabianBusiness.com.
According to the portal, sources suggest that DIC executives believe a deal would give the company a strong footing in the fastgrowing luxury brands market, which has seen huge growth in the past year.
One source is quoted as saying: "The Liverpool deal fell through at the last minute but DIC is always active in looking for new deals, and this is one that makes a lot of sense.
"It is an area that DIC has not been involved in, but the market is growing fast, and obviously it means this would be a very good investment." Since 1988, the Rivoli Group has been building its strong position in the fast growing retail environment in the UAE and the lower Gulf states.
The group has become one of the largest importers and retailers of luxury brands in the Middle East and offers a range of product categories from watches and writing instruments to menswear, accessories, gift items and eyewear. It represents brands such as Montblanc, Longines, Dunhill, Links of London, Glashtte, Carl F Bucherer, Milleret, Hour Choice, Kenzo and Vertu.
Currently, the Rivoli Group operates more than 200 retail outlets, including 35 Rivoli Stores, 90 Hour Choice outlets and mono-brand boutiques of various franchises.
Prabhakar recently told Emirates Today that Rivoli Group is looking to enter the Saudi Arabian market within the next two years, because of the country's existing strong retail sector.
DIC has stakes in DaimlerChrysler, Travelodge and The Tussauds Group.
The investment group had been examining the Liverpool Football Club's books with a view to a 156 million (Dh1.13) buy-out, but decided to withdraw last month following the failure of the Liverpool board to accept their offer, which came after a rival bid by American billionaire George Gillett.
By Anthony Richardson
© Emirates Today 2007
