GRT Jewellers India is set to take control of Tribhovandas Bhimji Zaveri (TBZ) after signing an agreement to acquire a 74.12% stake in the jewellery retailer for up to Rs 1,034 crore. The transaction involves the purchase of the promoter holding and is subject to regulatory approvals and other closing conditions, according to Reuters.
Following the acquisition, GRT will make an open offer for an additional 26% stake in TBZ, in line with SEBI regulations.
If the offer is fully accepted, GRT could potentially take its ownership close to the entire equity of the listed jewellery company.
The acquisition will expand GRT Jewellers' presence across India through TBZ's established retail network. TBZ currently operates 37 stores across the country and has a history spanning 162 years.
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G R Ananthapadmanabhan, Managing Director of GRT Jewellers, said the deal fits the company's plan to expand its presence across India. He added that TBZ's existing store network would support that strategy.
GRT said its management team will work with TBZ's senior executives to identify new growth opportunities and strengthen the jewellery retailer's business.
The transaction was announced after market hours on Monday. TBZ shares ended nearly 1% higher at Rs 304.40 on the BSE.
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