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L Capital buys 8% of Fabindia

L Capital buys 8% of Fabindia

Mumbai: L Capital, the private equity arm of Louis Vuitton Moët Hennessy (LVMH), the world’s biggest luxury goods group, has bought out the 8% stake in unlisted Indian ethnic wear chain Fabindia from Wolfensohn Capital Partners, two sources with direct knowledge of the matter said.

“The deal is done. A formal announcement is expected shortly," one of the sources said. Media reports have valued Fabindia, a retail chain which sells garments, furnishings, fabrics and ethnic products, at about 14 billion ($283 million).

Wolfensohn Capital Partners, the New York-based venture capital fund of former World Bank president James Wolfensohn, bought the stake in the Indian chain in 2007 for about $10 million.

Fabindia, also plans to raise funds for expansion, the sources said.

Sanjiv Kapur, managing director of Wolfensohn India, and a spokeswoman for Fabindia declined to comment, while L Capital managing director (MD) Sanjay Gujral did not immediately respond to an email seeking comment.

L Capital Asia launched a $640 million fund last year targeting emerging economies including China and India.

The French fund last year bought 25.5% stake in Genesis Luxury Fashion Pvt Ltd, which distributes global luxury brands, mainly apparel and accessories.

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