The Spanish group confirmed the sale of the stake to Sheikh Hamad bin Jassim bin Jabr al-Thani, a former Qatari prime minister, late on Monday.
“It gives us great satisfaction to be joined by a global investor who is so qualified . . . The new shareholder will accompany us in our growth and expansion,” said Dimas Gimeno, the group chairman.
Sheikh Hamad, a high-profile dealmaker and former head of the Qatar Investment Authority, made a string of acquisitions last year, buying Africa-focused independent producer Heritage Oil for £924m before taking a €1.75bn stake in Deutsche Bank.
Sheikh Hamad returned to private investing after his ally, Sheikh Hamad bin Khalifa al-Thani, the former Qatari emir, abdicated in favour of his son, Sheikh Tamim bin Hamad al-Thani in June 2013. That led him to relinquish his posts of prime minister, foreign minister and head of the QIA.
El Corte Inglés has historically been a towering presence in the Spanish economy, though the eurozone crisis weakened the group and exposed a series of management challenges.
Aside from its department stores, which occupy prime locations in Spain’s principal cities, the group controls supermarkets, travel agencies, opticians and mobile phone stores. The privately held group is one of the country’s largest private sector employers.
Almost all its assets are in Spain — leaving El Corte Inglés acutely vulnerable to the country’s recent economic crisis. Now, however, it stands to benefit more than other retailers from Spain´s surprisingly strong upswing. The Spanish economy is expected to grow at least 3 per cent this year and consumer spending is sharply on the rise. According to the group’s most recent set of results, published last year, full-year net earnings rose 6 per cent — the first rise after six consecutive years of decline.
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Sheikh Hamad bin Jassim bin Jabr al-Thani
El Corte Inglés’s veteran chairman, Isidoro Álvarez, died last September. A nephew of the group’s founder, he had been chairman of the board since 1989. Álvarez was replaced by Mr Gimeno, who was previously director-general of the company.
Sheikh Hamad, known as HBJ, was the go-to person for bankers and officials seeking investment from Qatar’s sovereign wealth fund. As the richest man in one of the world’s wealthiest countries, he often co-invested personally in deals.
Sheikh Hamad’s vehicle which bought into Deutsche, was set to invest in the unsuccessful merger of Greece’s Alpha and EFG Eurobank in the midst of the eurozone crisis in 2011. Another HBJ vehicle, Precision Capital, bought Dexia’s Luxembourg unit and KBL private bank in 2011.
The Sheikh’s personal wealth has grown after the government bought him and other investors out of a 50 per cent stake in Qatar Airways for an undisclosed sum.
Additional reporting by Simeon Kerr in Dubai
