Shares of Aditya Birla Trend and Retail (ABFRL) moved larger by 6 per cent to Rs 281 on the BSE in Tuesday’s intra-day commerce after the corporate mentioned its board has in-principally accepted buying the unique on-line and offline rights to the worldwide model ‘Reebok’ for the Indian market. This deal marks ABFRL’s foray into India’s fast-growing sports activities and activewear phase.
The board additionally accepted the acquisition of sure belongings of ‘Reebok India Firm’ together with stock, currents belongings/liabilities by means of getting into right into a licensing settlement and a purchase order settlement, respectively.
“Genuine Manufacturers Group (ABG), a worldwide model improvement, advertising and leisure firm, and ABFRL, India’s main vogue firm, right this moment introduced the signing of a long-term licensing settlement, which grants ABFRL unique rights to distribute and promote Reebok merchandise by wholesale, e-commerce and Reebok branded retail storesin India and different ASEAN nations,” ABFRL mentioned in a press launch.
The transaction marks a major milestone within the journey of ABFRL, which has developed its portfolio right into a powerhouse of manufacturers throughout all main vogue and life-style segments overthe final a number of years. The addition of Reebok, a marquee world sports activities and activewear model will fill an vital white area inABFRL’s portfolio, the corporate mentioned. READ ABOUT IT HERE
The proposed transaction is topic to the profitable completion of due diligence, vital statutory approvals and signing of definitive agreements. The switch of possession of the Reebok model from adidas to ABG is anticipated to shut in Q1 of 2022.