“Arvind Lifestyle Brands Limited (ALBL), a wholly-owned subsidiary of Arvind Fashions Limited (AFL), has signed definitive agreements for strategic sale of assets of its Unlimited retail business to V-Mart Retail Ltd. in an all-cash transaction,” Arvind Fashions said in a media release.
As per the agreement, Arvind group will get Rs150 crore in cash post the completion of the deal. The ALBL will sell its 74 retail stores and a warehouse to V-Mart at book value. The transaction also includes fixed assets, lease deposits, and inventory at the retail stores.
In addition to cash, there are contingent payments to be received, based on certain milestones achieved by V-Mart over the next few years for these stores, post the acquisition. The Company intends to utilise the amount so received for repayment of debt and working capital purposes.
“This sale will help AFL achieve its objective of focusing on its 6 high conviction brands which include US Polo Assn., Tommy Hilfiger, Arrow, Flying Machine, Calvin Klein, and Sephora. This also significantly completes the process of reset that AFL had embarked on, to consolidate and sharpen its portfolio as well as to strengthen its balance sheet,” it said.
After the announcement, shares of Arvind Fashions Limited jumped 20 percent to close at Rs201.90 while V-Mart gained 2.68 percent and ended at Rs3332.
Unlimited was a garment retail format that offered value, variety, quality, and style at an affordable price to consumers.
