Small appliances firm Singer India on Tuesday said an international investor will acquire 42 percent stake in the holding entity of the India business.
Retail Holdings India BV is a promoter entity of Singer India Ltd.
"Retail Holdings Asia BV, has entered into an agreement with an international private investor to sell approximately 42 percent of its equity interest in its 100 percent owned subsidiary, Retail Holdings India BV to the investor,” Singer India said in a regulatory filing.
Singer India, however, did not share the name of the investor or the deal size.
"No change in the ownership or control of Singer India will take place as a result of this transaction or is contemplated,” the filing said.
It further added that "RH India has been, and will continue to be, the majority shareholder, owning approximately 59 percent of the equity of Singer India”.
The transaction is anticipated to be closed before year end.
RH Asia said it believes that the Singer India business should benefit significantly from the relationship with the said investor.
"The investor has extensive experience in sewing and appliance distribution worldwide, including owning and operating Singer sewing and appliance businesses in France, Greece, and Eastern Europe,” the filing said.
"The Investor is an existing licensee of SVP Worldwide, the owner of the Singer trademarks, and has worked with the owners of RH India for over thirty years. In each of its operations the Investor has successfully grown and improved the profitability of the business,” it said adding that "the India company will have the benefit of the Investor’s extensive experience”.
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