New Delhi: The board of directors of Aditya Birla Fashion and Retail Limited (ABFRL) has decided to transfer the Madhura Fashion & Lifestyle (MFL) business from ABFRL to the name Aditya Birla Lifestyle Brands Limited (ABLBL). approved the split into a new company. It will be listed separately after the division is complete.
ABLBL will house lifestyle brands such as Louis Philippe, Van Heusen, Allen Solly and Peter Englund. Casual wear brands such as American Eagle and Forever 21. Sportswear brand Reebok. And Van Heusen innerwear.
ABFRL houses platforms such as Pantaloons and Style Up. Ethnic wear portfolio including designer wear partnerships and the recently acquired TCNS brand portfolio. Luxury items such as The Collective and Galeries Lafayette. and a portfolio of digital brands under TMRW.
The company said the move will accelerate growth and value creation through two publicly traded companies with clear structures and sharp capital allocation strategies.
ABFRL plans to raise funds within 12 months of the split. INRWe will retain 250 billion yen of capital to strengthen our balance sheet and fund the growth of the remaining business. The company said in a statement on Friday that its promoter group fully supports the proposed equity raise.
“Upon completion of the demerger, ABFRL shareholders will receive one share of ABLBL for every share of ABFRL, in addition to their existing shareholdings in ABFRL, in accordance with the share rights ratio approved by the board of directors and recommended by an independent valuation agency. The business assets and liabilities will be divided between the two companies in accordance with the prescribed regulatory provisions,'' the company said.
Accordingly, ABFRL's total borrowing amount is estimated as follows: INRAs of March 31st, 300 billion yen is scheduled to be split between the two companies. INR100 billion yen in debt goes to ABLBL.
The demerger will be implemented through NCLT's scheme of arrangement and once completed, all ABFRL shareholders will have equal shares in both companies. The company first announced its split plan on April 1st.
PWC LLP is the company's statutory auditor and AZB is its legal advisor on the transaction. Bansi S Mehta Valuers LLP was the independent valuer for the transaction and INGA Ventures Pvt Ltd provided the fairness opinion.
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