Google News
spot_img

Future Lifestyle Fashions to raise money by selling investments in fashion brands

Must Read

Future Lifestyle Fashions (FLF) is planning to raise money by selling its investments in fashion brands and utilise the funds for deleveraging its balance sheet as well as other corporate purposes.
According to a PTI report: The company has called for an EGM on March 24 to seek shareholders’ nod to form a wholly owned special purpose vehicle (WOSPV) for transfer of identified investments held by the Company for consideration, Future Lifestyle Fashions said in a notice to its members.
Explaining the rationale behind the move, it said the company owned many brands and also has exclusive manufacturing and marketing licences for India for certain global brands. It has also invested in the fast growing fashion brands such as Cover Story, Clarks, Turtle, Mineral, Spunk and Giovani, among others which are owned by various investee companies.
Some of the brands are at nascent stage and have considerable growth potential in future. In order to nurture each of the investments for its possible potential growth, it is necessary that proper support and guidance is given to each of these investee companies as per their specific needs and requirements, it added.
“The focus on such Investee Companies could be substantially enhanced if the investments held in these Investee Companies are transferred to a wholly owned special purpose vehicles (WOSPV),” the company said.
Accordingly, it is proposed to identify specific investments held by the company based on certain parameters, such as minimum holding, ability to monetise such investments, growth potential, etc from the investee companies, as may be identified by the Board or the committee of directors of the company, it added.
“The company would be utilising the funds raised by transfer of identified investments to WOSPV for deleveraging its balance sheet as well as for general corporate purpose, restricting usage for general corporate purpose to 25 per cent of the amount realized by transfer of the identified investments to WOSPV,” the notice to its shareholders said.
EGM would be held on March 24.
Currently, Future Lifestyle holds investments in firms which includes Future Style Lab, Rachika Trading, Mineral Fashions, Turtle, Clarks Future Footwear, Elisir Lifestyle, Eclat Lifestyle Private Limited, KFC Shoemaker, Resource World Exim, Celio Future Fashion, Holii Accessories, SSIPL Retail, Unico Retail, Indus-League Clothing and Indus Tree Crafts.

Latest News

Former HUL CEO Mehta teams up with PE fund L Catterton for India-focused JV

Mehta will serve as the executive chairman of India for the vehicle from 4 April onwardsMumbai: Former Hindustan Unilever...