New Delhi: The Competition Commission has approved the Future Lifestyle Fashions' proposed transfer of part of its apparel marketing business to a group entity. Under the deal, Future Lifestyle Fashions Ltd (FLFL) would transfer a section of its apparel marketing business, operated under the 'Lee Cooper' brand, to its indirect wholly-owned subsidiary Future Speciality Retail Ltd (FSRL).
FSRL is a wholly-owned subsidiary of Future Trendz Ltd (FTL), which is a wholly-owned subsidiary of FLFL. As part of the deal, FSRL would issue compulsorily convertible preference shares worth Rs 250 crore to FSRL CCPS Trust.
Beacon Trusteeship Ltd is the trustee of the FSRL CCPS Trust. In a tweet last week, the Competition Commission of India (CCI) said it has approved "acquisition of shares in Future Speciality Retail by Beacon Trusteeship".
The compulsorily convertible preference shares would be converted into 26 per cent equity of FSRL on fully diluted basis on or before 48 months from the date of subscription, as per the notice submitted to the CCI. FLFL owns and manages a portfolio of fashion brands that covers various fashion categories including formal mens wear, and footwear.
