Aditya Birla Group consolidates apparel business

Aditya Birla Group consolidates apparel business

The Aditya Birla Group on Sunday announced the merger of its branded apparel businesses of Aditya Birla Nuvo (ABNL), Pantaloons Fashion and Retail (PFRL) and Madura Garments Lifestyle Retail Company (MGLRCL), under the new Aditya Birla Fashion and Retail (ABFRL).

As per the scheme of arrangement, Madura Fashion and Madura Lifestyle, retailing divisions of ABNL and MGLRCL respectively, would be demerged into the listed company PFRL, that would be subsequently renamed as ABFRL.

With a combined turnover and EBITDA of Rs 5,290 crore and Rs 493 crore respectively for twelve months ended December 31, 2014, ABFRL would have the widest retail network in the country in the fashion space with 1,869 exclusive stores pan India, across 4.8 million square feet, as on March 31, 2015.

Aditya Birla Group Chairman Kumar Mangalam Birla said, “This consolidation will create India’s largest pure play fashion and lifestyle company with a strong bouquet of leading fashion brands and retail formats. This move brings India’s leading branded menswear and womenswear players together.”  “The consolidation will unlock value for the shareholders by giving them an opportunity to participate in the promising fashion space directly through ABFRL,” K M Birla added.

According to the swap ratio approved by the boards of the three companies, shareholders of ABNL will get 26 new equity shares of PFRL for every 5 equity shares held in ABNL pursuant to the demerger of Madura Fashion, shareholders of MGLRCL will get 7 new equity shares of PFRL for every 500 equity shares held in MGLRCL pursuant to the demerger of Madura Lifestyle and preference shareholder of MGLRCL will get one new equity share of PFRL.

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