India's Tata Group-owned Titan Co will raise its stake in its subsidiary CaratLane Trading by 27.2% for 46.21 billion rupees ($555.8 million), the parent company said in an exchange filing on Saturday.
Titan has entered into a share purchase agreement to acquire all the 91,90,327 equity shares held by the founder of CaratLane Trading and his family members, representing 27.18% of the total paid-up equity share capital of CaratLane on a fully diluted basis, the release said.
Unlisted CaratLane makes and sells jewellery. Titan, a joint venture between the Tata Group and Tamilnadu Industrial Development Corp, started as a watch company but has diversified into jewellery and eye care.
On completion of the purchase, Titan will hold 98.28% of CaratLane on a fully diluted basis, up from 71.09%.
"The transaction will be subject to completion of customary regulatory approvals and closing conditions and is expected to be financed through a combination of cash balances, internal accruals and debt," Titan said.
The indicative time period to complete the purchase has been set at October 31.
($1 = 83.1400 Indian rupees)
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