Primus Retail, which owns Weekender, is selling the apparel brand to Madhusudan Securities, a listed finance firm, for Rs 100 crore.
Pursuant to an agreement with Primus, Madhusudan Securities is acquiring the brand, partly through equity shares in the listed company.
Madhusudan Securities is proposing to seek approval of the shareholders for issue of 61 lakh equity shares to Primus Retail on a preferential basis. The Madhusudan scrip was quoting at Rs 64.25 on the BSE.
The preferential allotment will be discussed at a board meeting of Madhusudan Securities on Wednesday. The meeting will also explore fund-raising options for the acquisition.
According to Mr V. Balaji Bhat, Managing Director, Primus Retail, the company will continue to be a majority stakeholder in the brand.
Interestingly, the Weekender brand is not new to acquisitions. In 2007, Primus Retail (part-financed by UTI Venture Capital Fund and Citibank) bought the Weekender brand from Bangalore-based apparel exporter Gokaldas Images. After this acquisition, Weekender moved from being a “mass-priced” to a “mass-premium” brand.
Last year, Primus announced big plans to shed the youth- and kids-centric image of Weekender and reposition it as a family brand. “We still have big plans for Weekender and are looking at funding options by selling it to a group of investors,” said Mr Bhat, without divulging details.
The Bangalore-headquartered Primus is also the master franchisee for international brands such as Levis and Adidas.
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