De Beers eyes 51% of Rajesh Exports

De Beers eyes 51% of Rajesh Exports

Mumbai, 17 September Diamond mining group De Beers and a US-based buyout fund have separately shown interest in buying 51% of jewellery exporter Rajesh Exports Ltd from the founders, the Economic Times daily reported today.

The two firms are yet to make a formal bid, the paper said. The founders own 61.5 % of the firm.

Rajesh Exports Chairman Rajesh Mehta declined comment on the report, but said there has been increased interest from foreign funds and a “lot of big ticket funds have been calling us regularly."

The company’s board is scheduled to meet later in the day to consider raising the investment ceiling for overseas investors.

De Beers officials could not be reached immediately.

The De Beers move is linked to its interest in jewellery retailing in India, the paper said, quoting an industry source.

Rajesh Exports is predominantly into gold retailing and exports, and India being more of a gold market, no serious player can ignore it, the paper cited the source as saying.

Rajesh Exports is in midst of expanding its Laabh and Shubh brand of retail stores. REUTERS