In a deal valued at Rs 333 crore, AAA United BV, promoted by European fashion retailer Bestseller, has acquired a 20.67 per cent stake in Bombay Rayon Fashions, a fast-growing fashion garments exporting company. The company has raised this money through preferential allotment of equity shares. This will be followed by a mandatory open offer for a 20 per cent stake valued at Rs 256 crore. Together, the deals will fetch Bombay Rayon Fashions Rs 589 crore.
Bombay Rayon Fashions plans to use this money to fund its working capital requirements. It may use the proceeds to finance or acquire new projects and businesses. In future also, the deal is expected to result in increased volumes for Bombay Rayon as the company is looking at selling approximately 50 per cent of its additional capacity to Bestseller. The company has plans to increase capacity at its Maharashtra facility that will add garment capacity of 30 million pieces and processed fabric capacity of 180 million metres.