Pepe to exit from JV with Dollar Industries Ltd

Pepe Jeans Innerfashion Private Limited is 50:50 joint venture of Dollar Industries Limited (Dollar) and Pepe Jeans Europe BV (Pepe) incorporated under a joint venture agreement dated 11th August 2017.

Pepe being desirous to exit from Pepe Jeans Innerfashion Private Limited had offered Dollar to buy out Pepe's entire stake in accordance with the clause dealing with Right of First Offer (ROFO) in the said JV agreement.

Dollar, in exercise of its rights as per JV Agreement, has renounced the ROFO and has agreed to the transfer of shares held by Pepe in Pepe Jeans Innerfashion Private Limited in favor of G.O.A.T Brand Labs PTE. Limited (G.O.A.T), a body corporate incorporated under the laws of Singapore with (UEN: 202115672K) and having its registered office at 1 Raffles Place, # 34-04, One Raffles Place, Singapore 048616 or any of their affiliates and G.O.A.T has agreed to purchase the same. (Profile of G.O.A.T is mentioned in Annexure B). Consequently, G.O.A.T shal] purchase the entire stake of Pepe Jeans Europe BV and has executed a Share Purchase Agreement (SPA) with Pepe.

Accordingly, the existing JV agreement between Pepe and Dollar would stand terminated on transfer of shares by Pepe to G.O.A.T.

iv. Due to proposed sale of its stake by Pepe to G.O,A.T, Dollar would be entering into new JV agreement with G.O.A.T. The existing License agreement of the JV Company with Pepe Hungry KFT for use of their trademark *Pepe Jeans /Pepe Jeans London' wouid continue to be used by the JV Company on such revised terms and conditions as may be agreed on between the JV Company and Pepe.

The Board of Dollar in its meeting held on 18th November, 2021 has approved draft JV Agreement and the same would be executed upon transfer of shares by Pepe to GOAT and imullansouk termination of existing JV agreement.

The stake of Dollar Industries Limited would not be affected and the business activity of Pepe Jeans Innerfashion Private Limited will continue as been done presently.

The new JV Partner i.e. G.O.A.T Brand Labs Pte (G.O.A.T). will purchase 1,00,00,000 equity shares of the JV Company from Pepe Jeans Europe BV (Pepe) which constitutes 50% of the paid-up share capital in the JV Company. In addition to the above G.O.A.T will further subscribe 2% of additional non-voting equity on the existing and increased paid up capital.

All other terms of existing agreement have been agreed and incorporated in the draft JV Agreement.

Shares of Dollar Industries Limited was last trading in BSE at Rs. 475.75 as compared to the previous close of Rs. 486.35. The total number of shares traded during the day was 12387 in over 912 trades.

The stock hit an intraday high of Rs. 505.75 and intraday low of 460.00. The net turnover during the day was Rs. 5967424.00.

Source : Equity Bulls

Keywords

DollarIndustriesLimited INE325C01035 Pepe JV Exit GOATBrandLabs InnerFashion