Future Lifestyle Fashions Ltd (FLF) has announced the completion of transfer of Lee Cooper business, a leading brand in its portfolio, to one of its step down subsidiaries.
“FLF has moved the Lee Cooper brand business to Future Speciality Retail Limited, a step down subsidiary of FLF, on March 29 2017,” a statement said.
According to the statement, FSRL has issued Compulsorily Convertible Preference Shares (CCPS) aggregating to Rs 250 crore to FSRL CCPS Trust.
The FLF has entered into an investment agreement with the CCPS subscribers, which also allows them to exit at an agreed price as per the terms of the investment agreement. The CCPS are convertible into 26 per cent equity of FSRL on fully diluted basis on or before 48 months from the date of subscription of the CCPS.
The articles of association of FSRL have been suitably amended to reflect the terms of the investment agreement. This is an important step in FLF’s endeavour to unlock value in the Lee Cooper brand.
Going forward, FLF foresees a significant potential to scale up Lee Cooper business. Lee Cooper is one of the fastest growing denim wear brand and FLF is focusing on taking it to the leadership position in the segment.
This transaction along with the investee brands value unlocking has resulted in a combined Rs 700 crore fund raise for FLF.
This gears FLF for a stronger growth combined with an expansion of the bottom-line resulting in higher returns on capital employed and equity.
FLF, listed on NSE and BSE, is India’s leading integrated fashion house. FLF has world class retail formats like Central and Brand factory along with a strong portfolio of brands such as Lee Cooper, John Miller, Indigo Nation, Scullers, and Jealous 21 etc. For the 9 months period ended Dec 31, 2016, FLF achieved a revenue of Rs 2,890 crore, with a strong growth of over 18 per cent in 9 M FY17 (primarily driven by robust same store sales growth).
During this period, FLF reported net profit of Rs 27 crore. FLF operates over 5.5 million square feet of retail space which is the largest in the country.