Alok Industries enters into MoU with Mileta

Alok Industries Ltd has announced that the Company has entered into a Memorandum of Understanding (MoU) with Mileta International (Mileta) to acquire a 60% stake in Mileta with an understanding to acquire a further 19.6% on certain mutually agreed terms and conditions. Mileta, based in Czech Republic, is a leading European manufacturer of high quality shirting fabrics, batistes and voiles, complete line of functional table linen and bed linen and exclusive handkerchiefs.

Under the terms of the MoU, the Company will exclusively own all the brands of Mileta including Mileta, Erba, Cottonova, Lord Nelson, Wall Street, Osaka and Erbelle as also Mileta’s Licensee rights of ‘Daks’ for handkerchiefs. The Company will also become a sourcing base for Mileta’s products globally. Meanwhile, Mileta will provide design inputs, marketing inputs, training and transfer of technology, which the Company will leverage to enhance its product value. The Company will also use Mileta’s brands in India to widen its retail presence. The Company will pay EUR 13.96 million for the above acquisitions.

This acquisition is aimed at making further inroads in the growing European market and strengthening the Company’s presence in the fashion conscious apparel and home textile segments. The acquisition is expected to close in the next 3 months subject financial and legal due diligences and regulatory approvals, if any while the Company expects Mileta’s operations to be integrated into the Company in 12 months after the acquisition.

Source : Equity Bulls

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