HT Media, the media company which owns the newspapers Hindustan Times and Mint, is picking up 8.31% in online fashion retailer Koovs for GBP 3 million, which is approximately $4.4 million. This is a strategic investment, and HT Media will be buying 12 million equity shares in Koovs plc, at GBP 0.25 each, paying cash. At the time of filing this report, Koovs was priced at GBP 0.31 on the AIM (London), up 5% from the last close. The deal is subject to approval from Koovs pls, and is expected to close by 30th June 2016.
Fresh tranch part of recently announced fund-raising?
It’s worth noting that Koovs, around a month ago, announced a fund-raise of GBP 21.9 million (around $32 million) at the exact same price of GBP 0.25, though that fund-raising made no mention of HT Media. At that time, Koovs had said that it had “the potential to raise further tranches of funds as part of this Capital Raising,” and the the board had authorized the company to raise “up to an additional GBP 8.1million at 25 pence per Ordinary Share prior to 30 June 2016.” This deal is probably a part of that fund-raising.
Koovs Plc had said that it would use the funds to acquire 38.6% stake in Koovs Marketing (Koovs India) for GBP 9 million, from Infotel E-Commerce Private Limited, a company controlled by Anant Nahata.
In January, Koovs posted gross sales worth Rs 29.56 crore for the trading period of September 28, 2015 to January 3, 2016. In contrast, the company had posted gross sales worth Rs 9.55 crore in the same period the previous year.