Titan Company has entered into an agreement to acquire 67 percent stake in Dubai-based jewellery firm Damas for $283.2 million from Mannai Corporation, which is a Qatar-based company, a stock exchange filing said on July 21.
The move will boost the Tata group firm’s expansion plans in six GCC countries- UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain, the stock filing said. As of today, Damas has 146 stores across the six GCC nations and houses in-house as well as international labels, the company statement said.
"With the Damas acquisition, Titan Company is stepping out from its diaspora focus into other nationalities and ethnicities. Damas is a prestigious brand revered in the GCC markets for its product innovation, quality and customer experience," said CK Venkataraman, managing director of Titan. "The acquisition not only creates a significant new global opportunity for Titan, but also enhances Titan's overall position in the jewellery market in the GCC countries and brings in multiple synergy benefits in talent, retail networks and supply chain," he added.
The stock of the company ended 0.74 percent higher at Rs 3,428 on NSE. The announcement of the deal came after the market hours.
Moreover, the company will have the right to acquire the remaining 33 percent shares of Damas after December 31, 2029, the statement said.
“The region is exhibiting robust economic growth creating a demand for differentiated, high quality offerings rooted in Arabian aesthetic and appealing to sophisticated clientele seeking unique, culturally resonant designs,” Titan said in a statement.
Titan derives nearly 90 percent of its revenue from jewellery sales. The company has had a presence in the United Arab Emirates since October 2020 through its Tanishq jewellery stores, according to the company website.
"Mannai will continue to own a minority stake in Damas for the next 4 years as the growth plans for
Damas are taken fonvard. It is intended that the proceeds of the sale transaction will be deployed by Mannai to strengthen its resources in support of further expansion of its core trade and IT services
businesses in addition to reducing the group debt," said Alekh Grewal, group chief executive officer of Mannai Corporation.
With Reuters inputs
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