Home >Companies >News >Trent to buy out TVS Shriram in Landmark for `84 crore

Chennai:Trent Ltd, a Tata group retail company, will buy back the entire stake of private equity firm TVS Shriram Growth Fund in bookstore chain Landmark Ltd for 84 crore, the company informed the BSE on Monday.

Trent had picked up a 74% stake in the Chennai-based retailer for 103.6 crore in 2005. In November 2009, TVS Shriram Growth Fund picked up a 25% stake in Landmark from Trent for 65 crore.

Trent said its board of directors on Monday approved a plan to buy TVS Shriram Growth Fund’s entire holding of 1.82 million shares in Landmark.

Landmark, established by Hemu Ramaiah in 1987, has 17 stores across the country, in addition to seven bookstores in five-star hotels and five at airports.

Trent, established in 1998, runs lifestyle chain Westside, hypermarket chain Star Bazaar, Landmark, and Fashion Yatra, a fashion store.

“We have made a 19 crore post-tax profit on the deal and will further sweeten the return for our stake holder to invest in the book publishing arm Westland Ltd (a Trent subsidiary)," said Gopal Srinivasan, chairman and managing director, TVS Capital Funds Ltd.

He declined to say when his company will invest in Westland, which currently has revenue of 30 crore.

TVS Shriram Fund will retain an option to invest in Westland for a minority stake at a future date, Trent said in the statement to BSE.

Trent shares closed on Monday at 1,145.10 each on BSE, down 1.14 %, while the benchmark Sensex rose 0.17% to 19,501.08 points

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