Reliance Retail subsidiary to acquire Arvind Beauty Brands Retail
Arvind Fashion said in an exchange filing on November 3 that the company has entered into a share purchase agreement with Reliance Beauty and Personal Care Ltd. Reliance Beauty and Personal Care is a wholly owned subsidiary of Reliance Retail Ventures Ltd.
The transaction has been done at enterprise value of ₹216 crore towards sale of entire equity stake and repayment of loans. The purchase consideration towards sale of entire equity stake is ₹99.02 crore.
Under the agreement, Arvind Fashions will sell and transfer its entire stake held in Arvind Beauty Brands Retail Ltd to the Mukesh Ambani-led Group’s company. Arvind Beauty Brands Retail is a subsidiary of Arvind Fashion. After the completion of the agreement, Arvind Beauty Brands will cease to be the company’s subsidiary.
The sale is expected to be completed on November 3, 2023.
The turnover of the Sanjay Lalbhai-led Arvind Beauty Brands Retail in the previous financial year was ₹336.7 crore, 7.60% of the consolidated revenue of Arvind Fashion. The net worth of Arvind Beauty Brands Retail Ltd in the financial year 2022-2023 was ₹10.6 crore which accounted for 1% of the consolidated net worth of the company.
