Kishore Biyani-led Future Lifestyle Fashions Limited has agreed to pick a 29.9 per cent stake in fashion e-tailer Koovs for an undisclosed amount. This comes after Walmart announced a deal to buy a significant stake in e-tailer Flipkart and Biyani questioning e-commerce business models.
Koovs will issue 57,876,600 new ordinary shares to Future Lifestyle at a price of 10 pence per share, representing 24.8 per cent of its enlarged issued share capital, for £5,787,660 (Rs 525 million, $7.6 million). Two representatives from Future Lifestyle will join Koovs’ board of directors
in due course.
In addition, Koovs also announced on Wednesday the formal opening of a bookbuild to raise up to
£10 million of equity at a price of 15 pence per share.
Future Lifestyle has agreed to make additional investments to take its ownership up to 29.9 per cent within six months of the equity raise. Koovs has also allotted the first tranche of £4.2 million of new ordinary shares to HT Media after an announcement on June 18.