Home » Private Sector » Titan takes over remaining 27.18% stake in CaratLane for Rs 4,600 crore, to hold 98.28% share now

Private Sector

Titan takes over remaining 27.18% stake in CaratLane for Rs 4,600 crore, to hold 98.28% share now

CaratLane

Titan, a Tata group business, said in an exchange statement on Saturday that it has acquired the remaining 27.18 percent ownership in its jewellery unit CaratLane for Rs 4,621 crore in cash from the brand’s creator Mithun Sacheti and his family.  

CaratLane is a subsidiary of Titan and an unlisted private firm involved in the manufacture and selling of jewellery. Titan announced the purchase of 91.90 lakh equity shares in CaratLane, giving them a 98.28% ownership in the company. 

Titan is expected to complete the acquisition of the further CaratLane interests by October 31, 2023. 

“This is to inform you that Titan Company Limited (the Company) has entered into a Share Purchase Agreement today to acquire the entire 91,90,327 equity shares held by the Founder of CaratLane Trading Private Limited (CaratLane) and his family members, representing 27.18% of CaratLane’s total paid-up equity share capital on a fully diluted basis,” said the company. 

Titan said the deal will be subject to usual regulatory clearances and closing conditions and will be financed through a combination of cash balances, internal accruals, and debt, with only approval from the Competition Commission of India required.  

“This is to inform you that Titan Company Limited (the Company) has entered into a Share Purchase Agreement today to acquire the entire 91,90,327 equity shares held by the Founder of CaratLane Trading Private Limited (CaratLane) and his family members, representing 27.18% of CaratLane’s total paid-up equity share capital on a fully diluted basis,” said the company. 

CaratLane

Titan said the deal will be subject to usual regulatory clearances and closing conditions and will be financed through a combination of cash balances, internal accruals, and debt, with only approval from the Competition Commission of India required. 

Titan had inked a share purchase agreement with CaratLane under which it has the option to acquire the remaining 28% ownership beginning in 2021. 

According to the pre-agreed-upon methodology, remaining stockholders have the right to a put option on Titan for their interest beginning in 2023. 

Both parties have the option of appointing a banker of their choosing for a third-party independent valuation to assess the value of the jewelry brand. Following the value, the average of the two would be considered, as agreed upon by both parties. There was no arbitration agreement in place to settle conflicts. 

Titan had inked a share purchase agreement with CaratLane under which it has the option to acquire the remaining 28% ownership beginning in 2021. 

According to the pre-agreed-upon methodology, remaining stockholders have the right to a put option on Titan for their interest beginning in 2023. 

Both parties have the option of appointing a banker of their choosing for a third-party independent valuation to assess the value of the jewelry brand. Following the value, the average of the two would be considered, as agreed upon by both parties. There was no arbitration agreement in place to settle conflicts.