Singaporean firm acquires 25.4 percent stake in Reid and TaylorJuly 3rd, 2008 - 3:14 pm ICT by IANS
New Delhi, July 3 (IANS) Apparel maker S.Kumars Nationwide Ltd (SKNL) announced Thursday that Singapore government-owned GIC SI has acquired 25.4 percent equity stake in its wholly-owned luxury brand Reid and Taylor Ltd for Rs.9 billion ($209 million). GIC, the private equity investment arm of Singapore Investment Corp Special Investments, will route the investment through an affiliate company, Indivest Pte Ltd, the company said in a regulatory statement.
It valued Reid and Taylor (India) at Rs.35.4 billion.
SKNL will hold 74.6 percent stake in Reid and Taylor after the conversion of warrants.
“This transaction provides us with significant opportunity not only to expand Reid and Taylor’s business but also offers a chance to execute several plans that we have in mind,” SKNL managing director and vice chairman Nitin Kasliwal said.
“We plan to utilise the proceeds of the transaction for enhancing the manufacturing capacity, introducing new operating lines including adding brands that have the potential to further enrich our investment portfolio, and towards restructuring our loan portfolio that will strengthen the quality of our balance sheet,” he added.
SKNL plans to invest Rs.20 billion in its holding company SKNL International, which will act as an acquisition vehicle. The unit will be established in the Netherlands.
Reid and Taylor, originally a Scottish company, was acquired by SKNL in 1998. The company targets to open 341 stores by 2009-2010.
Tags: affiliate company, balance sheet, equity stake, gic, holding company, investment arm, investment portfolio, loan portfolio, luxury brand, managing director, New Delhi, percent stake, private equity investment, pte ltd, s kumars, scottish company, singapore government, taylor ltd, vice chairman, warrants