The Hindu Business Line : Walker eyes stake in Flemingo Dutyfree Shop

New Delhi, July 18 Walker Investments, an affiliate of private equity fund Samara Capital Partners Fund I Ltd, plans to acquire up to 15 per cent equity in Flemingo Duty free Shop Private Ltd (FDSPL) for up to Rs 80 crore.

FDSPL – where Flemingo International holds 60 per cent stake - is seeking Foreign Investment Promotion Board approval for investment by Walker, instead of the earlier-proposed Citigroup Venture Capital International Mauritius Ltd.

The current proposal involves issue of convertible preference shares to Walker Investments of a value of about Rs 80 crore to be converted into equity shares of the company at a later date, such that post the issue Walker Investments would hold up to 15 per cent in the equity capital of FDSPL.

Post conversion

Post conversion of preference shares, the equity holding of Flemingo International and Walker Investments in FDSPL would stand at 51 per cent and 15 per cent respectively, talking the total FDI to 66 per cent. The holding of Indian shareholders, which currently stands at close to 40 per cent in the company, would come down to 34 per cent.

Meanwhile, Walker Investments, Mauritius has also in-principle agreed to acquire 15 per cent equity in Flemingo DFS Private Ltd (FPL) for an investment of up to Rs 20 crore. It is proposed that FPL would initially issue convertible preference shares to Walker of Rs 10 crore, while the balance would be drawn subsequently at the option of FPL and subject to further due diligence. These convertible preference shares would be converted into equity at a later date for a premium.

More Stories on : Mergers & Acquisitions | Foreign Direct Investment

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