“The board of directors of the company in its meeting held today has approved the proposal to invest an amount up to GBP 15.3 millions in one or more tranches by way of acquiring of or subscribing to the equity shares of Koovs plc,” it said in a BSE filing after the market closed on Wednesday.
According to a PTI report: Koovs will first issue Future Lifestyle Fashions with 57.8 million shares, representing 24.8 percent stake, raising GBP 5,787,660 of cash, it said in seperate filing.
Koovs also announced the formal opening of a bookbuild to raise up to GBP 10 million of fresh funding at a price of 15 pence per share.
“Assuming the full GBP 10 million is raised, Future Lifestyle Fashions will make additional investments through direct/ indirect mode (in addition to the 57.8 million shares subscribed under the subscription) to take its ownership interest up to 29.9 percent,” the filing said.
Koovs Chairman Lord Alli has committed to invest GBP 1.5 million in this round, according to the filing.
The deal is subject to regulatory and procedural approvals.
Future Lifestyle Fashions owns and markets about 30 fashion brands through exclusive brand outlets, department stores and multi brand outlets, as well as company-operated chains such as Central and Brand Factory. It collectively operates more than 400 stores.
Kishore Biyani, Group Chief Executive Officer, Future Group, said, “This investment would complement the existing value chain for Future Lifestyle Fashions as an integrated branded fashion player.”
Alli said this deal marks a giant step forward in the Koovs’ journey to win the e-fashion market in India.