GRT Jewellers (India) agreed on 31 August to acquire a 74.12% controlling stake in Tribhovandas Bhimji Zaveri, the Mumbai-listed jewellery retailer known as TBZ, from its promoters for up to INR 1,033.71 crore.
Why GRT Jewellers (India) Private Limited is buying Tribhovandas Bhimji Zaveri Limited (TBZ)
GRT said the acquisition would build a stronger pan-India presence by adding TBZ's 37 stores to its own network in India and Singapore.
Deal terms and financing
GRT will buy 49,459,775 shares from the promoter group at up to INR 209 each, subject to downward adjustments under the share purchase agreement. Under SEBI takeover rules it launched an open offer for up to 17,270,845 shares, or 25.88%, at INR 249.61 a share, worth up to INR 431.09 crore if fully accepted. The open-offer price was about 18% below TBZ's closing price on the day of the announcement.
Regulatory approvals and timing
The share purchase is conditional on approval from the Competition Commission of India and TBZ's lenders. A detailed public statement on the open offer was published on 7 September.
Market context
TBZ shares rose by the 20% daily limit after the deal was disclosed, even though the open-offer price was below the market price.
