Trent, the retail subsidiary of the Tata group, has purchased a 76% equity stake in the Chennai-based Landmark, a privately owned retail chain selling books and music, for Rs 103.6 crore in a cash deal.
Trent purchased the entire 75% stake held by Nataraj Ramiah, partner of Landmark, besides a 1% stake from Hemu Ramiah, Landmarks managing partner. However, Hemu Ramiah continues to hold the balance 24% stake and will continue to be the CEO of Landmark. While the deal was struck late on Monday evening, the agreements were signed on Tuesday.
Trent is a large-size retailer with two formats - Westside and Star India Bazaar. While Westside has a national presence with 18 stores, Star India Bazaar launched its first hypermarket recently in Ahmedabad.
Landmark started off with a single store in Chennai in 87. It now has four - three in Chennai and one in Bangalore and also operates one in Kolkata through a joint venture with Emami.
Landmark, together with its two distribution and online books retailing subsidiaries, clocked a turnover of Rs 95 crore in 04-05. Its turnover is expected to touch Rs 130 crore in the current financial year.
Interestingly, the enterprise value of the company has been arrived at around Rs 130 crore. Since almost all the cash raised now will go to Nataraj Ramiah, there wont be any cash mix into the company on account of the strategic sale.
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| Posted : 8/31/2005 |
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