Corrected: UPDATE 3-Swatch takes majority stake in Dubai retailer Rivoli

Hengdeli Holdings

25/11/2013 13:55

* Swatch raises stake in Rivoli to 58 pct * Gains better control of retail network * UAE world's no.10 market for Swiss watches (Adds details, background) ZURICH, Nov 25 (Reuters) - Swatch Group  UHR.VX  has raised its stake in Dubai-based retail group Rivoli Investments LLC to 58 percent, taking full control of its network of outlets in the fast-growing Middle Eastern market. Under the deal, the Swiss watch maker bought an additional 18 percent stake in Rivoli from the private equity arm of Dubai Holding, owned by the emirate's ruler, via Swatch subsidiary Technocorp Holding.  Luxury goods groups have been stepping up control of their retail networks, particularly in fast-growing emerging markets in Asia and the Middle East, by opening directly operated stores and taking stakes in retail partners. Reuters had reported in October that the private equity arm of Dubai Holding was in talks to sell the 18 percent stake in Rivoli to Saudi-based Al Rajhi Capital.  ID:nL5N0II2DK  Rivoli operates a network of over 360 retail businesses in the Middle East, predominantly active in the watch segment, Swatch said, adding Rivoli employed over 1,500 people. Swatch Group also holds a 9 percent stake in Hong Kong-based retailer Hengdeli Holdings Limited  3389.HK  and a 33 percent stake in Saudi-Arabian retailer Alzouman General Trading Co. Ltd.  Dubai, helped by a rebound in its property market, is recovering from a debt crisis in 2009 when several of its state entities were forced to restructure debt and seek more time for repayment.   But the emirate, facing debt repayments of about $50 billion over the next three years, has been getting serious about selling off assets to raise money.  ID:nL5N0F60D9   (Reporting by Silke Koltrowitz; editing by Patrick Graham) ((silke.koltrowitz@thomsonreuters.com)(+41 58 306 7454)(Reuters Messaging: silke.koltrowitz.thomsonreuters.com@reuters.net)) Keywords: SWATCH RIVOLI