INDIA BUSINESS WORLD - APRIL 1st - APRIL 15th - 2008
LIBERTY INTERNATIONAL, PE FIRMS PICK 12% IN PROVOGUE
UK-based retail infrastructure developer Liberty International along with a group of private equity investors such as Altima Partners, T Rowe Price, New Vernon, Genesis Indian Investment and Acacia Partners, have picked up around 12% equity stake in fashion retailer Provogue India, for Rs 314 crore. The new investors have picked up the equity through a preferential allotment route.
Provogue will use these funds to gear up for expansion in its retail infrastructure subsidiary Prozone, expanding current retail network, building new retail formats, for bringing international brands and acquisitions, MD Nikhil Chaturvedi said. Provogue has issued 2.85 million shares to the new investors at Rs 1,100 per share. The shareholders approval for the preferential issue will be sought through an extraordinary general meeting of the company scheduled to be held in May ‘09. In a separate transaction, Provogue’s promoters increased their equity in the company by 7.5% through a convertible warrants issue. Two promoters group companies, Everest Plaza, and Fairprice Traders bought 14,84,000 convertible warrants at Rs 1,100 each.
“We have diluted part of our equity in the company but at the same time we are increasing our stake as well,” said Mr Chaturvedi. “So there is no substantial change in the promoters equity now,” he added. Currently, promoters control 43.59% in Provogue.
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