Tata Group retail arm Trent buys TVS Shriram's stake in Landmark for Rs84 crore
19 Feb 2013
The board of Tata Group retail arm Trent has approved a proposal to buy TVS Shriram Growth Fund's entire stake in bookstore chain Landmark Ltd, for Rs84 crore.
In 2005, Trent, which runs the lifestyle chain Westside, had acquired a 74-per cent stake in the Chennai-based Landmark for Rs103.6 crore and the same year sold 25 per cent to TVS Shriram Growth Fund for Rs65 crore.
"The company's board has approved to purchase from TVS Shriram Growth Fund I its entire shareholding of 18,25,074 equity shares of Rs10 each of Landmark Ltd, a subsidiary of the company, for a consideration of Rs 84 crore," Trent said in a filing with the Bombay Stock Exchange.
''Further, it has been agreed between the parties that the fund would retain an option to invest in a minority stake in Westland Ltd (a subsidiary of Trent) at a future date," it added.
''We have made a Rs19 crore post-tax profit on the deal and will further sweeten the return for our stake holder to invest in the book publishing arm Westland Ltd,'' said Gopal Srinivasan, chairman and managing director, TVS Capital Funds Ltd.
Established in 1987 by Hemu Ramaiah, Landmark has 17 bookstores across the country, and seven in five-star hotels and five at airports.
Apart from Westside, Trent runs hypermarket chain Star Bazaar, Landmark, and fashion store Fashion Yatra.
TVS Shriram Growth Fund I is a Rs600-crore fund that invests in mid-cap businesses.
