UK's Mothercare partners with Reliance to strengthen South Asia presence
17/10/2024 17:38
Oct 17 (Reuters) - Mothercare MTC.L formed a joint
venture with Reliance Brands Holding UK, strengthening its
presence in the South Asian region, and said it refinanced its
existing debt facilities with Gordon Brothers.
Reliance Brands, a unit of Reliance Industries Ltd
RELI.NS , acquired a 51% stake in the JV that owns the
Mothercare brand and related intellectual property in India,
Nepal, Sri Lanka, Bhutan and Bangladesh for 16 million pounds
($21 million), with Mothercare retaining the remaining 49%.
Earlier in September, Reliance partnered with Israeli
innerwear maker Delta Galil as part of its expansion in India's
apparel market, aiming to double its retail business within the
next three to four years.
Mothercare said on Thursday it also secured new debt
facilities of 8 million pounds, helping the London-listed
company reduce its debt.
"Reduction in the required facility size, funded by the
formation of the joint venture, and the resulting significantly
reduced cash interest cost, greatly improves our flexibility for
FY25 and beyond," Clive Whiley, chairman of Mothercare, said in
a statement.
($1 = 0.7695 pounds)
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Maju
Samuel)
((Aatrayee.Chatterjee@thomsonreuters.com;))