Future Lifestyle sold a 10% stake in May to LVMH Moët Hennessy Louis Vuitton-owned private equity fund L Catterton Asia for about Rs 900 crore.
Kishore Biyani’s Future Lifestyle Fashions, part of Future Group, on Wednesday said the company is acquiring a 29.9% stake in London-listed Koovs.com for around `140 crore funded through internal accruals.
Koovs, a leading e-commerce fashion business, has reached a conditional agreement with Future Lifestyle Fashions (FLFL), part of Future Group, to subscribe for up to a 29.9% stake in Koovs subject to regulatory and procedural approvals.
Lord Alli, chairman of Koovs, said in a statement: “This marks a giant step forward in the Koovs’ journey to win the e-fashion market in India. Whitman Howard will act as bookrunners to the Equity Raise.”
Subject to the satisfaction of certain conditions, under existing shareholder authority, Koovs will issue Future Lifestyle Fashions with 57,876,600 new ordinary shares at a price of 10 pence
per share, representing 24.8% of the current issued share capital, raising £5,787,660 of cash.
Kishore Biyani, group CEO, Future Group, said: “This investment would complement the existing value chain for FLFL as an integrated branded fashion player. FLFL’s strong retail presence backed by owned brands coupled with Koovs online strategy will help reach more customers and create value for all stakeholders.”
Earlier, Future Group had tried to acquire Jabong.com in 2016, but failed and that was subsequently bought over by Flipkart’s unit Myntra.
Future Lifestyle sold 10% stake in May to LVMH Moët Hennessy Louis Vuitton-owned private equity fund L Catterton Asia for about Rs 900 crore. The company is likely to use a part of this fund to acquire the stake in Koovs, a senior official of the company said.
Arvind Singhal, chairman, Technopak, said, “After Myntra, Koovs is the only successful fashion retailer and sells mostly private labels through its website. It will be a win-win for both as Future Group can sell its brands on Koovs and the private labels of Koovs can be sold in Future Retail shops.”