Louis Vuitton buys 8 pc stake in Fabindia

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Louis Vuitton Moet Hennesy (LVMH) bought 8 percent stake in Fab India, the Indian clothes and lifestyles products retailer. The stake sale saw the exit of Wolfensohn Capital Partners exit from the company.

The deal value was around Rs. 150 crore, according to AZB & Partners, the law firm which advised LVMH in structuring the transaction and carried out due diligence, drafting, negotiation and finalisation of the transaction documents.

L Capital bought the stake from venture capital fund Wolfensohn Capital Partners, which has purchased this stake in 2007 for around $10 million. Fabindia was currently valued at around Rs 1,400 crore ($283 million, according to a report by PTI.

Fabindia also has a 7 percent stake by Wipro boss Azim Premji’s fund Premji Invest.

AZB & Partners has for the first time advised L Capital, the private equity arm of luxury goods giant Louis Vuitton Moët Hennesy (LVMH).

AZB Delhi’s managing partner Ajay Bahl and partner Anil Kasturi acted for L Capital. “It was a very, very interesting deal,” said Bahl, adding “It was very challenging in many ways because there were so many different options because of different suitors, etc. and because [Fabindia is] such an iconic asset.”

Chartered accountant Vikas Vig, a senior partner at accountancy firm Mohinder Puri & Co and a long-standing trusted advisor to Fabindia and assisted the company on this investment, Bahl said. L Capital started a $640m fund in 2011 to target India and other emerging markets.