Under the scheme of arrangement, ABFRL has demerged its Madura Fashion & Lifestyle (MFL) business and vested it into Aditya Birla Lifestyle Brands
Flipkart holds 6% stake in ABFRL; the floor price of the block deal is likely to be Rs 79.5 per share, sources told Moneycontrol
Upon completion of the demerger, the shareholders of ABFRL will get one share of ABLBL (now Madura Fashion and Lifestyle) for every one share in ABFRL, in addition to their existing shareholding in ABFRL.
The management’s recognition of the need for a demerger through a vertical split of businesses is timely given the high growth and competition in the fashion industry
The Madura Fashion & Lifestyle business segment consists of four lifestyle brands viz Louis Philippe, Van Heusen, Allen Solly & Peter England apart from American Eagle & Forever 21, sportwear brand Reebok and the innerwear business under Van Heusen