The Lebanese debt-laden Co-Op supermarket chain has accepted a rescue package from al-Muhaidib Group, but the agreement was sealed on the Saudi conglomerate's terms and with a bare minimum of shareholder support, Daily Star reported Thursday.
The contract will be signed by the end of the week and implemented immediately, the paper said, adding that it gives al-Muhaidib, owner of Saudi Arabia's Giant Stores the 15-year licensing and management agreement that it lobbied for during earlier negotiations.
Co-Op reportedly asked the Saudis to purchase $15 million of shares to end the 26-year-old chain's cash crisis, but this was rejected, the paper said.
The final agreement, which was approved at a Co-Op general assembly Monday with less than 15 percent of shareholders present was almost twice as long as the Co-Op wanted, according to the paper - Albawaba.com
© 2000 Al Bawaba (www.albawaba.com)
