Koovs PLC Future Lifestyle Fashion Limited Subscription (0514C)
September 27 2018 - 2:00AM
UK Regulatory
TIDMKOOV
RNS Number : 0514C
Koovs PLC
27 September 2018
27 September 2018
Koovs plc
("Koovs" or the "Company")
Future Lifestyle Fashions Limited signs subscription agreement
to invest additional funds between GBP9.5m to GBP10.5m
The Subscription
Further to the Company's announcements on 4 July 2018 and 19
July 2018, Koovs plc (AIM: KOOV) is pleased to announce that it has
signed a subscription agreement with strategic partner Future
Lifestyle Fashions Limited ("FLFL"), part of Future Group - India's
largest retail group, for FLFL to take its current shareholding in
Koovs from 16.25% up to a maximum of 29.99%.
Under existing shareholder authority and subject to the
satisfaction of certain conditions, including the approval of
Reserve Bank of India ("RBI"), FLFL have signed a subscription
agreement to subscribe for between 63,300,000 and 69,850,000 new
ordinary shares of 1p each in the capital of the Company ("Ordinary
Shares") at a price of 15p per share, raising between GBP9.5m and
GBP10.5m of cash (the "Subscription"). Once completed FLFL will own
between 28.89% and 29.99% of the Company's enlarged issued share
capital.
The strategic partnership with FLFL represents a
transformational deal for the Company and is expected to deliver
synergies across the value chain from manufacturing and
distribution to market reach, marketing and customer
engagement.
Lord Alli, Chairman of Koovs, said: "This additional investment
and commitment from FLFL underlines the tremendous opportunity to
leverage our strategic partnership and ensure that Koovs is the
aspirational first choice online western fashion destination for
India's twenty-somethings. The partnership will significantly
benefit our customers, partners and all shareholders."
About Future Group
FLFL operates over 400 stores in India with over six million
square feet of retail space and owns and markets 30 exclusive
fashion brands through branded stores, department stores and multi
brand outlets, including its own Central and Brand Factory
chains.
FLFL is part of Future Group - one of India's leading consumer,
retail and services companies covering fashion, food and homewares.
It owns over 60 brands, operates close to 2,000 retail stores
spanning over 22 million square feet and attracts a footfall of
over 500 million a year. Future Group sells in the region of 300
million garments a year, making it one of the top 10 fashion
apparel companies in the world. Future Group also has one of
India's most unique and rapidly-growing digital payment platforms,
Future Pay, which has an active user base of over 6.5 million.
Related party transaction
For the purposes of the AIM Rules for Companies ("AIM Rules"),
FLFL is a substantial shareholder in the Company and therefore a
related party. As such, the Subscription constitutes a related
party transaction.
The directors of the Company, having consulted with Peel Hunt
LLP in its capacity as the Company's nominated adviser for the
purposes of the AIM Rules, consider the terms of the Subscription
to be fair and reasonable insofar as shareholders are
concerned.
For further information please contact:
Koovs plc Tel: +44 (0)20 7151
Mary Turner / Robert Pursell 0170
Peel Hunt LLP (NOMAD and Broker) Tel: +44 (0) 20 7418
Dan Webster / George Sellar / Guy Pengelley 8900
Headland (Financial PR) Tel: +44 (0)20 3805
Lucy Legh / Rob Walker / Charlie Twigg 4822
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
STRLLFLSADIRFIT
(END) Dow Jones Newswires
September 27, 2018 02:00 ET (06:00 GMT)
Koovs (LSE:KOOV)
Historical Stock Chart
From Jul 2024 to Aug 2024
Koovs (LSE:KOOV)
Historical Stock Chart
From Aug 2023 to Aug 2024