Pepe Jeans India to exitJoint Venture (JV) effective stake sale to 'GOAT Brands'
22 November 2021, Mumbai:
Group Has agreed to transfer shares of Pepe Jeans Innerfashion to G.O.A.T Brand Labs.
Pepe Jeans has decided to exit its joint venture in India. The Spanish brand had formed a 50:50 joint venture with Dollar Industries in India in 2017.
Dollar renounces ROFO
Pepe being desirous to exit from Pepe Jeans Innerfashion had offered Dollar to buy out Pepe’s entire stake in accordance with the clause dealing with Right of First Offer (ROFO) in the said JV agreement.
Dollar, in exercise of its rights as per JV agreement, has renounced the ROFO and has agreed to the transfer of shares held by Pepe in Pepe Jeans Innerfashion in favor of G.O.A.T Brand Labs (G.O.A.T) incorporated in Singapore.
Also see: India’s economic advisory council expects it to grow 7-7.5% in next fiscal
Consequently, G.O.A.T shall purchase the entire stake of Pepe Jeans Europe BV and has executed a Share Purchase Agreement (SPA) with Pepe.
New trademark agreement
Accordingly, the existing JV agreement between Pepe and Dollar would stand terminated on the transfer of shares by Pepe to G.O.A.T. “Due to the proposed sale of its stake by Pepe to G.O,A.T, Dollar would be entering into new JV agreement with G.O.A.T.
The existing license agreement of the JV Company with Pepe Hungry KFT for use of their trademark ‘Pepe Jeans/Pepe Jeans London’ would continue to be used by the JV Company on such revised terms and conditions as may be agreed on between the JV Company and Pepe,” Dollar Industries said in a stock exchange filing.
The Board of Dollar in its meeting held on November 18 has approved the draft JV agreement which would be executed upon transfer of shares and termination of the existing agreement.
50 percent paid-up share capital
G.O.A.T will purchase 1,00,00,000 equity shares of the JV company from Pepe which constitutes 50 percent of the paid-up share capital. In addition to this, G.O.A.T will further subscribe 2 percent of additional non-voting equity on the existing and increased paid-up capital.
Also see: Tiger Global, Flipkart Ventures invest $36 mn in G.O.A.T Brand Labs
G.O.A.T invests in and scales digitally native brands in the lifestyle space (fashion, home & kitchen, nutrition, beauty, and personal care).
Founded by industry veterans Rishi Vasudev and Rameswar Misra and backed by marquee investors such as Tiger Global and Flipkart Ventures, G.O.A.T supports brands by providing them with growth capital, data-based insights, seamless operations, and deep expertise in brand building, digital marketing, and product development.
(The news article has not been edited by DFU Publications staff)
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