KKR and Fajr Capital, close to buy 25 percent of Azalea

KKR & Co and Dubai-based Fajr Capital are reportedly close to buying a 25 percent stake in fashion retailer Azadea Group.

According to three sources aware of the matter quoted by Reuters, "The deal isn't done but it's getting closer.” This would be the US private equity firm's first Middle Eastern investment.

Although the sources would not put a value on the bid by the two firms, the stake being sold by the owners was expected to fetch between 400 and 500 million dollars.

To date, KKR, Fajr and Azadea all declined to comment.

Fajr, which includes Malaysian state fund Khazanah Nasional and Abu Dhabi Investment Council among its shareholders, has been investing heavily in the region in the past months.

Based in Lebanon but with operations across the wider Middle East, North Africa, Turkey and Pakistan, Azadea holds franchise rights for brands such as Gap, Zara, which is part of Inditex, and Superdry.

Founded in 1978 by Wassim Daher, the current chairman, Azadea maintains a strong family presence in the running of the business. Said Daher, Wassim's brother, is chief executive while another sibling, Hassan Daher, is managing director.